Nowadays, it is more important than ever we begin teaching kids about money. The knowledge they acquire, when you teach children about money, can make a long-lasting difference in their life.
But most schools don’t teach kids about money. Don’t you think it’s ironic-the knowledge that benefits your children the most is taught the least? That’s where you come in.
The majority of personal financial lessons and money skills are taught to children by their parents. Yet, if you look at the alarming statistics about growing debt and financial hardship in America, it is obvious that most parents are not teaching kids about money.
But teaching children about money: spending & saving, investing in stocks and real estate, managing credit, and entrepreneurship isn’t easy. Even if you have the knowledge and experience to impart, not everyone is skilled at teaching kids about money -or has the desire, time and ability to effectively teach kids about money.
To combat financial illiteracy and to keep this country strong, teaching children about money is essential. Below are a few tips so you can effectively teach kids about money.
Tip #1: Relate Money to Their Lifestyle Dreams. Teaching kids about money to where they internalize the information has as much to do with motivation as it does with education. Teaching children about money by focusing just on ‘money’ can be a big mistake that turns them off.
Today’s youth are not focused on just “money”. It’s what money ‘allows them to do’ should be our focus when we teach children about money. Before you beginning teaching kids about money be sure to understand their personal dreams and find out how they want to live their day-to-day life. You will be pleasantly surprised at how many youth want to learn about money when you are teaching kids about money in a way they relate too.
Tip #2: Help Them Recognize Opportunity. Even though many people are going through financial challenges now, it is important that we teach our children about money and focus on how to recognize opportunity.
When the economy is in bad shape is when many of financially savvy people are making investments that will increase their long-term net worth. Teaching kids about money can start with simple lessons like a practical understanding of market cycles with the knowledge on how to take advantage of future trends is a simple concept that will have a profound impact on their life. By getting into the habit of always looking for ways to teach children about money will help them keep their eyes out for opportunities – in turn they will have more opportunities.
Tip #3 Savings Plan. Helping them to create a budget and savings plan is important when teaching childern about money. An essential element teaching children about money is getting them to form positive saving & spending habits.
Since today’s youth are comfortable with technology it is highly recommended you teach kids about money in a way they relate to. Forget about showing them how to write checks – instead teach them to automate their savings & budget plans.
Teaching kids about money by focusing on automating their entire finances will help them to set up their financial foundation in a professional way. Helping them to automate their finances – from paycheck to investments – will help them earn more interest, protect their credit and have a professionally managed investment plan. This automation of their finances is essential in effectively teaching your children about money.
When we begin to teach our kids about money it opens up new opportunities for them. Be sure to pick up the tips and skills you need to teach children about money in ways they understand, relate to and will use.