How To Teach Kids About Personal Finance
Since the school system is doing a piss poor job of teaching us how to manage and grow our finances it’s up to us, as parents to get the job done. But the question is, how to teach kids about personal finance? I believe it’s best do this starting early, and move with baby steps. Teach your kids of the value of the dollar, early! I found a good resource that has some good ideas about how to start inching this in the talks! It’s from Chicago Tribune, it’s a good resource make sure to get the full story!
Start talking to them, start small. This is so much easier now with all this information readily available! Show them this blog, quiz them a little. This is the most important stuff for them to learn! NOW! Jere are a few good ideas on how to teach kids about personal finance! If you get them started young they will never have to worry about their financial position in the future!
Be A Parent.
Harness your parent power. Studies show that parents carry the most weight when it comes to teaching kids about money. In a recent study of millennials by Bank of America and USA Today, 58 percent of those interviewed cited their parents’ advice or example as most influential in how they handle their own finances.
Nevertheless, a study by T. Rowe Price found that 72 percent of parents are at least somewhat reluctant to talk to their kids about financial matters.
Just freaking man up and talk to them! They are your kids, not random strangers. They respect and love you!
Start Small and Reward
Take small steps to reap big rewards. There’s no need to overwhelm kids with information. When teaching teenagers about credit cards, for example, the first lesson should be that plastic is not cash; it’s a loan that you have to repay plus interest if you don’t pay off the entire amount each month (the calculator at http://www.moneychimp.com can help make your point). If they understand that, they’ll be well on their way toward staying out of debt even if they’re too young to understand a credit card agreement.
There will be more articles to come on education the next generation on how to have good money skills. But just as in the article said for them – it’s good to start small so I think those two ideas are a good starting point. This is by far our most important lesson for our children, I’m going to take the mystery out of how to teach kids about finance.