How to Teach Your Kids Financial Literacy
While kids can learn just about everything they need at school and college, one of the most important things that they need to learn from their parents at a young age is financial literacy.
Many of us make the mistake of giving kids an allowance but not following up on how they make use of it.
Neither do we make them realize the need for saving money at a young age and go beyond the concept of a piggy bank.
When it comes to financial education, training the kids needs to be made a habit from an early age.
Make your child aware of what his or her piggy bank is really about.
Kids can pick up fast and once they are aware of the benefits of saving, they are well on their way to financial wellness.
Some parents are of the opinion that financial literacy ought to be taught at school.
However, the concept of not only saving money but making sound financial decisions must begin at home.
When it comes to financial education, training that begins at home has an everlasting impact on a child's approach to dealing with finances.
Research indicates that nearly one-third of high-school seniors are not prepared to deal with personal finances.
The summer holidays are the perfect time to begin a financial literacy program for the kids.
This is the time where there is more interaction between parents and kids.
Get them involved in things like budgeting for their monthly expenses or even a vacation plan.
Make them add up their allowance for the month and work towards saving an amount every month.
Once they note down their expenses they will soon realize whether they made a wise decision or not.
Of course, depending on their age you will need to guide them through the process.
The idea is to make their allowance a teaching tool for their finances.
A part of your financial education, training should include the benefits of opening a savings account.
They would love the idea of having their own bank account just like their parents do.
A good idea would be to 'tax' them on their savings.
Make them aware that a certain percentage of their savings will be taken away every month.
You can put that away as an additional saving for them without their knowledge.
Teaching your kid budgeting skills will help them learn a lot about managing money.
Give them a shopping budget for toys and let them decide what they want to buy within that budget.
This is the ideal way to get them to distinguish between needs and wants.
For the slightly older kids, you can let them calculate your bills such as mortgage payments, phone bills, utility bills, their tuition fees and other expenses, and explain how you go about them.
This is an ideal way to help them achieve financial literacy.
It is essential to make your kids aware of the need for financial wellness.
They ought to understand the pros and cons of credit cards so that they are well prepared to deal with them when they are independent.
Most importantly, let them learn that money doesn't come easy.
Make them do a few chores and pay them for it.
Above all, keep your financial education training interesting.
Playing Monopoly is a good way to get them into number crunching.
Many of us make the mistake of giving kids an allowance but not following up on how they make use of it.
Neither do we make them realize the need for saving money at a young age and go beyond the concept of a piggy bank.
When it comes to financial education, training the kids needs to be made a habit from an early age.
Make your child aware of what his or her piggy bank is really about.
Kids can pick up fast and once they are aware of the benefits of saving, they are well on their way to financial wellness.
Some parents are of the opinion that financial literacy ought to be taught at school.
However, the concept of not only saving money but making sound financial decisions must begin at home.
When it comes to financial education, training that begins at home has an everlasting impact on a child's approach to dealing with finances.
Research indicates that nearly one-third of high-school seniors are not prepared to deal with personal finances.
The summer holidays are the perfect time to begin a financial literacy program for the kids.
This is the time where there is more interaction between parents and kids.
Get them involved in things like budgeting for their monthly expenses or even a vacation plan.
Make them add up their allowance for the month and work towards saving an amount every month.
Once they note down their expenses they will soon realize whether they made a wise decision or not.
Of course, depending on their age you will need to guide them through the process.
The idea is to make their allowance a teaching tool for their finances.
A part of your financial education, training should include the benefits of opening a savings account.
They would love the idea of having their own bank account just like their parents do.
A good idea would be to 'tax' them on their savings.
Make them aware that a certain percentage of their savings will be taken away every month.
You can put that away as an additional saving for them without their knowledge.
Teaching your kid budgeting skills will help them learn a lot about managing money.
Give them a shopping budget for toys and let them decide what they want to buy within that budget.
This is the ideal way to get them to distinguish between needs and wants.
For the slightly older kids, you can let them calculate your bills such as mortgage payments, phone bills, utility bills, their tuition fees and other expenses, and explain how you go about them.
This is an ideal way to help them achieve financial literacy.
It is essential to make your kids aware of the need for financial wellness.
They ought to understand the pros and cons of credit cards so that they are well prepared to deal with them when they are independent.
Most importantly, let them learn that money doesn't come easy.
Make them do a few chores and pay them for it.
Above all, keep your financial education training interesting.
Playing Monopoly is a good way to get them into number crunching.
