6 Tips for Parents Wanting to Improve Children’s Financial Literacy

Some students who return to school this autumn use at least some of the personal finance class hours, but that class should not stop there.

The good news is that more and more states require that personal finance be taught in classes, but that may be insufficient. Some experts say that financial literacy should be taught frequently from early on.

Parents’
Help children understand value
Before taking revenge – the dollar
More complicated finance
Problems after life.
According to President and Chief Executive Officer Laura Levine of JumpTart Coalition for Individual Finance Literacy, a non-profit organization that promotes financial education for children of all ages, more and more children are educational programs I need it. Financial education.

“We have to do a lot of things to ensure that children across the country are able to receive financial training during the school year.

Fortunately, there is a way to improve children’s financial literacy outside the classroom. For parents who want to attract children’s attention with smart money management from a young age, here are six tips:

Discuss the money and its mechanism. Discussions on financial education are often focused on savings and investment, but for very young children it makes sense to start with a simpler concept. what will you do? And this can lead to an important lesson of expenditure.

If her son is four years old, she will pay a dollar and take him to the shop to eat a snack. There, the boy learned that he could afford it for one dollar and learned something that was too expensive.

This type of lesson is especially important when purchasing lots online with online or credit card today. According to a 2014 survey by the Federal Reserve Bank of Boston, only 25.6% of financial transactions are currently settled in cash at this time.

“Our children are growing up in the electronic world and it may be difficult to understand when their money is subject to electronic trading.The parent’s goal is to help children learn the value of the doll and later It is to recognize money in a way that is helpful to deal with more complex financial problems.

Set savings goals. Adults save money for child retirement and school education, but it makes more sense to set short-term savings goals for children. For example, you can spend money on a small toy for a child, put a small change, but if you save money for a few weeks or months, you can afford to pay bigger toys.

“When they buy a toy, the lights will light,” Levin said. “They say,” I understand, I sacrificed, it was worth it. ”

Encouraging you to donate money to young children will help you develop saving habits that will become adults when your age goal replaces the needs of toys.

“We teach our children to brush everyday, but we do not expect to understand every aspect of dental hygiene at a young age, customs,” Levin said. “It is the same with money”

Determine how to save savings. It is another way to help them build a strong financial base, whether in a piggy bank or simple glass to give young children special containers that can store savings.

“Many lessons are highly relevant and instantly effective.” What do you do with pig banks and piggy banks when you receive their birthday money? Money is in your pocket It is called “conservation”.

Elderly children can benefit from savings accounts and savings bank exits to credit unions.

Please visit your child and financial institution. Assuming your child can save money in a bank or credit union, Levine will visit the agency directly and do it online. During such a trip, the child can look around and better understand what banks and credit unions are.

It is also a good idea to explain to children that the money that banks and savings credit cooperatives are saving money is not to deprive them forever.

“I would like to teach the children to use financial institutions rather than putting money under the mattress,” Levin said.

Give them the opportunity to budget their money. If you regularly give your child a check, you need to confirm that it is not too tight before the next day of caution. If you take a vacation with your child, you can give a certain amount for a small purchase such as souvenirs or snacks during the trip.

Do not worry if you can not afford it for child allowance or vacation allowance.

“The important thing is not how much you pay for it, but how to treat it to your child and leave it to the end”.

Please convey your worth. Some parents may think that they can not spend a lot of money with their children, but you can take over the value.

Of course, the value may be different for each family. You can emphasize the importance of charitable activities and teach children the benefits of saving. It is a good thing to talk about non-perfect financial decisions made on the way. As in many other contexts, a child notices when one parent says something (except!), Another consumes recklessly.

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