Article

This month is Financial Literacy Month!

MoneyEdu

Now is the Time to Prepare Kids for a Lifetime of Financial Success

Most parents wouldn't dream of raising their kids without a strong foundation in things like reading and math. To fail to do so would leave them utterly unprepared for life.

That's exactly what happens when it comes to the subject of money, however. Many children never learn the basics of saving and budgeting. They move on to high school and college poorly prepared to handle their finances. When they become adults, this lack of financial literacy can have seriously negative consequences.

This scenario is why it's vitally important to teach your children about money -- and to get started when they're still young enough to use a piggy bank.

This week, we're going to discuss the best way to talk to your children about money in every phase of life. We'll discuss how to instill a desire to save in small children by using new technology and old fashioned, real world techniques. We'll review the core lessons you should teach them about money -- allowances, how to open a bank account and how to be a smart consumer. We'll also tackle the issues that are relevant to teens: how to find a job, how to make big purchases and the value of charity.

Statistics show that a record number of young adults are returning to their parents' home after college. This week we'll explore why this phenomenon is happening, and the best way to help these "boomerang kids" prosper. We'll also look at the most common money mistakes young people make, and how to prevent these errors.

Recognizing that much of what children learn about money is directly influenced by their home life is essential. Children often emulate the unsound financial behavior they witness in their environment, so we'll also discuss the importance of setting an example.

Money isn't always the easiest subject to discuss. Some people aren't entirely comfortable dealing with financial issues; others may feel they aren't sufficiently financially literate to offer guidance.

Despite these reservations, it's critically important that children learn the basics of spending, budgeting and saving as early as possible. These lessons are crucial to later financial success.

This week, we hope you'll find lots of actionable information to help your children reach financial security as they get older.

N
View more financial education articles and other resources.