Teach Children About Money
Call it the power of the piggy bank. Financial literacy, even for kids, is more important than ever.
Words such as loan default, foreclosure and recession are as common now as savings, bank statements and assets. The only things I knew of as a kid were a checking account and a savings account.
Times as we all know have changed. There are more things to teach children today about finances.
If you want your kids to grow up to lead lives where they don’t default on loans or experience a home foreclosure, start teaching them now about savings, bank statements and assets.
Financial literacy begins at home. Children whose parents teach them about basic finance grow up to be adults who are more likely to be successful financially.
Routine family life is rich with opportunities to teach them the ins and outs of money matters. Here are five ways parents can teach their kids financial literacy:
- Discuss and explain basic finances
- Teach kids how to save and set short-term goals (a new toy) and long-term goals (college)
- Open a savings account for your child as early as possible
- Teach kids about budgeting and money-management skills
- Get kids involved in daily activities and decisions about spending