There are a lot of things parents do to try and prepare their child for a financially independent life, be it going to college, living on their own, or simply trying to survive in the real world as their own person. Teaching your children or student about youth financial literacy is a great way to prepare them to deal with their own money.
One of the reasons college students are notoriously ‘broke’ is that no one has really taught them how to deal with their finances, or reinforced positive spending habits. In this article, we’ll go over some of the ways you can make sure that by the time your child needs to deal with his or her own money, they are ready to do so.
Educating your child or student in certain areas is crucial when it comes to financial responsibility. Areas important to youth financial literacy include general knowledge of how the banking system, credit and debit cards, investments basics, the mental game of money and related aspects personal money management.
There are a number of emerging youth financial literacy programs however most focus on impractical, theory based aspects of personal finance. Check with your local school district, community center and/or city council about program designed to help parents give their children a real world financial education.
Perhaps the most important person you can educate on youth financial literacy is not your child, but yourself. Children tend to learn more from example than from being told how to do something. If you practice financial habits that are healthy and responsible and inform your child about why and how you do them, it will make a significantly greater impression than simply lecturing them about why they should spend their money a certain way.
Also be sure to raise awareness about the importance of receiving a practical financial education. Simply informing your children or student about why you make certain purchases instead of others and how to act in certain financial situations is enough to show them how responsible behavior with money can affect personal finances.
Due to the emerging financial crisis, young people need to know more than ever how to properly deal with money, especially when the younger generation comes from an era of relatively free spending. Youth financial literacy is being stressed more and more across the country, and important information regarding financial literacy can be found online.
Visit http://www.NYFEC.org now to get your free video tips and financial literacy newsletters. The National Youth Financial Educators Council is your trusted leader in financial literacy events, financial educator certification, financial literacy curriculum, college planning and financial education products.
I coudn’t agree with you more. I think it’s essential that parents educate themselves – at least to the point that they feel comfortable talking with their children about money. Financial literacy is a family business and a Northwestern Mutual survey indicated that half of parents don’t feel comfortable talking to their kids about money. Other surveys have indicated that kids are very influenced by their parents money habits. Kids learn from their parents whether the parents are directly or indirectly teaching them. Parents are best off making sure that they are practicing and teaching their kids good money habits early. My company, Snigglezoo Entertainment, created the Money Mammals to help teach kids about money at a very young age because I believe we must build good habits early rather than break bad habits later. Whatever you do as parents, make sure you start early and know that your kids are watching you.
-John