Parenting Pointers: Kids and Finances

According to a new study out in time for Mother’s Day, mom may not want kids to spend hard-earned cash on her, at least not extravagantly. She wants her children to learn to manage and save money.
According to a new study conducted by McGraw-Hill Federal Credit Union, only one-third of mothers surveyed believe their children 18 and under are well prepared for their financial future. Of 300 mothers polled by Toluna,PLC, nearly half believe their children are unprepared to get a job and believe their children will not be able to finance college.

These results are part of the reason McGraw-Hill Federal Credit Union President/CEO Shawn Gilfedder has a mission to enhance “financial wellness” and who believes that financial education begins at home. “The benefits of teaching your children about money management can lead to a lifetime of good financial decisions,” says Gilfedder. “Teaching by example is a good place to start.” Gilfedder suggests that parents involve kids in household budgeting, grocery shopping and even reading bills or statements as a way to get them interested in personal finance Credit unions like McGraw-Hill help consumers achieve financial wellness through monthly financial literacy seminars, employee financial education and high value, low cost products and services. The credit union has also put together some basic tips to help prepare kids for a sound financial future:  

• ·         Allowance for kids of all ages.  It is not usually a lot of money, but it allows children to learn more about what things truly cost in reality. Nothing makes children appreciate money more than earning their own. It does not take them long to realize that money is much easier to spend than it is to earn. 
• ·         Talk about money. Kids are interested in this topic! Share basic lessons on budgeting; banking and saving with “real world” examples such as when you make a major purchase, use a credit card, or pay bills or take money out of an ATM.  
• ·         Teach them to budget. When they want to buy something special, give them the tools to earn the money, save the money and make compromises along the way so they have the money when they want to spend it.

About McGraw-Hill Federal Credit Union
McGraw-Hill Federal Credit Union, a member-owned cooperative, is a leading and progressive financial institution committed to members and the community at large through financial technology, financial education and literacy and a consultative approach to banking. The credit union offers a full range of banking, investing and insurance services to more than 20,000members worldwide and serves more than 120 companies. For more information, visit www.McGrawHillFCU.org, or view videos about McGraw-Hill Federal Credit Union at www.youtube.com/mcgrawhillfcu.