Teaching your children financial skills is imperative for their future. 80% of parents believe that their children are being taught private money matters at college, yet 90% of high school students and 87% of students say that whatever they know about money they learn from their oldsters. Among oldsters with children five and older, only 26% feel well enough prepared to teach their kids about personal finances. Jump$tart Coalition for private money Literacy measured 12th graders’ information of personal finance basics and found that only 10% of high school graduates could satisfactorily answer questions about personal finance.
Unsure where to begin in speaking to you youngsters about money? You’re not all alone. Very like teaching your youngsters to look all ways before crossing the street, managing money, is a parental responsibility that safeguards kids’ future. Good habits start early in life and the savings habit brings lifelong benefits. Children have an interest in cash and they can learn by example and by doing.
Engage your kids using a number of these straightforward, fun ideas and help them learn the value of cash:
1. Explain to your children what cash is all about.
The earlier you can teach a child or teenager about cash, including getting paid, saving money, and spending cash responsibility, the better prepared they’ll be to manage their own money.
2. Explaining the value of spending money may also be done at home.
You can assign some household chores and pay a small amount after they were able to do it.
3. Talk to your child about the family budget.
Allow them to ask about household finances and how you manage the household budget. Brace the training process by budgeting for a family outing or a purchase.
4. If you have multiple children, a technique to keep them incentivized is by giving a prize to whoever earned the highest amount in their savings.
5. Show your children how an ATM machine works.
While many children know that cash doesn’t grow on trees, they may think it comes out of a wall. Help your children understand that you must put money in the bank before you can take it out.
When you debate money with kids, you help them develop a feeling of limits. There’s only a certain amount of money to go around! If you spend it on some things, you won’t have it to spend on others. Teaching your youngsters about saving money doesn’t need to be a hard job. Remember to bide your time and consistent, and your kids will be in a position to learn this critical skill in a straightforward and neat way.
About the Author:
International author and speaker Nicole Clemow devotes her time helping parents teach their kids about money. For more information, check out Nicole’s latest Squidoo Lens “Whose Responsibility is it – the parents or teachers?” http://www.squidoo.com/teachingkidaboutmoney.
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