A few decades ago, financial education for children was taught with the appropriate finance curriculum that when paper money runs out, the shopping must definitely stop. Without paper money, you simply didn’t have purchasing power. These days, however, a new school of reason has taken over our children: when paper money runs out, you can still rely on plastic . . . or in most cases, plastics. And they come in different tempting forms—credit cards, debit cards, prepaid cards, ATM cards, and, depending on your bank of choice, reward cards. And before an unsuspecting teenager realizes it, he’s already at the mall, buying something he doesn’t necessarily need, for an amount he really can’t afford.
The recent financial crisis proves there is something we can do to help young people make wise financial decisions. In the last two years, the number of states requiring students to take personal finance classes has increased. Parents are beginning to realize how important it is to expose their children to finance training that would teach them the value of both paper money and plastic.
Here Are 3 Simple Ways To Teach Young Children About Finances:
Tip #1: Plan for a career. Teach young people the value of hard work; this is an excellent foundation that can help them become successful in any field of choice. Instill discipline and control, but teach them how to celebrate successes, too. Learn to hone their talents and skills, and from there help them plan a career that will lead to financial stability through the appropriate finance curriculum.
Tip #2: Prepare your children for the real world. Allow them to make spending decisions, but address all aspects of finance like budgeting, saving, investing, and credit first. Help them understand that building a good credit history doesn’t necessarily mean having multiple credit cards. Introduce them to finance training that teaches important skills such as spending, banking, writing checks, and balancing of checkbooks. Knowledge in these areas will allow them to make sound financial decisions. Show them how to look beyond the charms of advertising and mould them into smart consumers.
Tip # 3: Set a good example. Children are like sponges; they absorb everything around them. Become a good role model for young people around you, and teach them how to give back to the community. Raising responsible young adults and utilizing financial education for children can help stabilize the future global market.
Two Cents To Remember
Allowing our children to make financial decisions without teaching them through the appropriate finance training how to manage their money and credit, is just as irresponsible as letting a child swim without taking lessons. They will most likely drown in debt. Just as much as the Great Depression moulded a generation that was known for their frugality, we must allow the recent economic crisis to shape a new generation that is financially empowered and educated. Make sure your child’s finance curriculum is put in place today!