Teaching your Children about Finances
August 12, 2017
“Teaching your children about money is one of the most important things you can do to make sure they succeed in life,” said Treasurer Curtis Loftis.
Financial experts agree that teaching kids about money is vital to their success later in life. But a recent article from Forbes says “Some schools teach personal finances, but a financial literacy test given by the National Financial Educator's Council found that test-takers from 15-18 years old scored an average of only 59.6%.”
Forbes says “that means it's up to the parents to make sure children have a financial education before going out to the real world.”
“I could not agree more with that statement,” added Treasurer Curtis Loftis. “It’s important to start teaching children financial literacy from a young age. We can’t see children growing up not knowing how to handle their student debt, or how to plan for retirement. We need to make sure they are ready to make proper financial decisions.”
Forbes says you can integrate finances and money into kids’ everyday lives, so they will be more comfortable with personal finances as adults.
Here’s how Forbes says you can do it:
Toddlers – The goal is to introduce them to the concept of money. Figure out the best way to communicate that money is earned, but keep it fun and simple.
Help them set up pretend stores that they can “shop” in, have them work at a lemonade stand, or use money when they are learning to count.
Elementary School – Prime time to teach them the importance of earning and saving money
Yard sales offer a great opportunity to include them in the sales aspect of money
Allowance where they have to earn it with extra chores teaches them how to work and earn their money
Use every day errands as opportunities to explain price differences, and needs vs. wants
Teenagers – This is the last chance before they go off on their own, so they should be using real money
A stock market game helps kids learn about stocks, without the danger of losing real money
Getting a job shows them what it’s like to really work for your money, plus how to work and save for something they really want
Explain the cost of college, school loans, credit cards and credit scores. They should hear it form you first before having to navigate it on their own
“Having a plan to help your children learn about money at every step of their life will help them successfully navigate their finances as an adult,” said Treasurer Curtis Loftis. “You will be setting them up to understand money, and not let it control their life.”
See the full article here: How to Teach Your Children About Finances...At Any Age