Parents Failing To Teach Their Kids Personal Finance
If you don't think that you're doing all you can to help prepare your child to handle their personal finances, you're not alone. According to a recent study, 83 percent of teens don't believe that they have the knowledge they need to manage money well.
While there is a push at some schools to teach kids basic personal finance concepts, the truth is that parents think schools are teaching these concepts while schools are relying on parents to do this teaching. Talking about money is one of the lowest priority discussions for parents with their children. The result is that most kids don't feel that they are getting the money management education that they really need.
To help parents better communicate about money to their children, the National Financial Literacy Commission recommends the following tips:
Begin Early: Giving lessons about money should start as soon as the child starts to express wants. Be creative. Get one of the many piggy banks that teach money concepts so that it's fun and they learn that money needs to be used for various things beyond spending. Try to show how money relates to the many things that they are learning.
Teach to Their Level: Children can learn best when the lesson is geared directly toward something that is important to them. If they want a toy, use that as an opportunity to teach about earning and saving so that they can get the toy.
Continuously Repeat: Money lessons for children aren't a one time discussion. These discussions should be included as a part of every day conversations and interactions. The more that good financial habits are explained, the more likely they are to stick and be adopted by the child.
Be the Example: As the saying goes, actions speak far louder than words. If you constantly surrender to the crying for a toy at the store, it's going to be difficult to show that delayed gratification is an important financial concept. After teaching money lessons, make sure to reinforce them with your own actions so the kids don't get mixed signals.