By: Gregg Murset, CEO of BusyKid
Nearly one quarter of US states receive a failing grade when it comes
to teaching kids personal finance in schools. Twelve states don’t attempt to
teach it at all. This could be one of the reasons that only 35% of credit card
users don’t carry a balance and pay off their bill every month, and that only 1
in 3 Americans is saving for retirement. We don’t expect kids to learn how to
read, write or drive without instruction, but another essential life skill,
money management is ignored for the most part.
April is Financial Literacy Month, the perfect reason for parents to take
the initiative to supplement their kid¹’ lacking personal finance education at
school with lessons at home. Use these tips to determine how and where to
start.
1. Check Out Your Schools - Visit your school to see what (if
anything) is being taught about personal finance or if personal finance is
required to graduate high school. Once you have this information, you can
determine your next moves to ensure your kids know how to manage money when the
time comes. With a majority of U.S. high school students failing to learn about
money, there’s a good chance your children won’t either.
2. Leave Books To The Adults - There are thousands of books available
on finance and managing money, but don’t waste your cash buying these for your
kids. Kids learn best by doing, so sitting down with a book that explains
percentage rates, credit, loans or budgeting won’t leave a long lasting
impression. They would learn more from watching movies like “Moneyball” or “The
Big Short”.
3. Use Teachable Moments - Each we are faced with numerous financial
decisions that you could use as a "teachable moment” for your children.
The next time you are grocery shopping, show your child how to compare prices
and brands. If you’re paying bills, let your child sit with you and see how you
manage money.
4. Look Differently at Chores & Allowance - While a majority of
parents agree that kids should be doing chores and receiving an allowance, some
parents feel money shouldn’t be the reason kids help around the house. It’s
those parents who should look at chores and allowance differently. Think of it
as a child’s first job and a parents first chance to teach them everything they
need to know (work ethic, direct deposit, budgeting, opening bank account,
taxes, etc) before they head off to get a real job someday.
5. Learn As Family - Many parents don’t like to talk to their children
about money because they believe they aren’t knowledgable enough. If you are
one of these parents, jump in and learn with your children. You’re never too
old to learn, erase bad habits or set good examples. Plus doing it with your
children could be fun!
6. Practice What You Preach - If you already practice good personal
finance habits, congratulations! If not, this is a great time to start. In
either case, practice what you preach to your children since the greatest
influence on your child is you.
7. Understand, No One Is Perfect! - Let’s face it, if everyone was
great at managing money there would be little National Debt, no bankruptcy and
everyone would have a savings account. So except these facts and do something
to get better at it. I believe we are so afraid of what our children will think
about our bad financial status that we forget how the current situation could
be a great lesson. Don’t let your pride get in the way of teaching your
children how NOT to make the same mistakes.
8.
Don’t Quit! - This might be the hardest thing of all. Being good at money
management is a never-ending process. However your kids are going to be faced
with hundreds of thousands of financial decisions in their lifetime, so you
never get to the point where you can stop teaching, supporting or guiding.
Quitting now only puts them on a path to be living back with you when they are
older, full of student loans and moving from job to job.
About BusyKid
BusyKid is the first online chore chart
where children can earn, save, share, spend and invest real money wisely.
Formerly known as My Job Chart, BusyKid is easy to use, revolutionary and
allows kids to receive a real allowance from their parents each Friday. No more
points or trying to convert imaginary money.
BusyKid is committed to helping children
learn the important basic financial principles they don’t get anywhere else.
Designed as a platform that is easy for parents to implement, BusyKid features
pre-loaded chores based on children’s ages and making chore payment approvals
is as simple as answering a text message. BusyKid is the only online
chore/allowance platform that allows children to earn real allowance and use it
immediately to buy gift cards, make a donation or invest in real stock. For
more information, go to www.busykid.com.
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