Teaching Kids About Money
March 29, 2023 at 3:10 pm Leave a comment
Guest article by Yulissa Asprilla, yasprilla@annuity.org
Teaching your kids about money is an important part of parenting. It is important to start early and give them a basic understanding of money and how it works. You can also help them to understand the importance of investing and the risks associated with it. Finally, you can help them to understand the importance of giving back to the community and how to make charitable donations, It can help them to become financially responsible adults.
Some parents may not feel confident enough in their own financial knowledge to be able to teach their kids about money. Others may think it is inappropriate to discuss money with young children, or mistakenly believe that children are too young to comprehend financial concepts. However, it is important to remember that teaching your children about money is essential to their development, and it is never too early to start.
When to start?
Depending on the age of your child, the conversation may vary. For younger children, you can start by introducing basic concepts such as the value of money, how to save, and how to make wise spending decisions. As your child gets older, you can introduce more complex topics such as budgeting, investing, and credit. It is important to have open and honest conversations with your child about money and to ensure that they understand the value of money and how to manage it responsibly.
How do I convince my kid that college is worth it?
When it comes to convincing your kid that college is worth it, it is important to emphasize the numerous benefits that come with a college education. Explain to your child that college provides them with the opportunity to gain valuable knowledge and skills that will help them succeed in their future career. Additionally, point out the potential for increased earning potential and job security that a college degree can provide. Finally, explain that college is a great way to make long-lasting connections and friendships that can last a lifetime.
Making a Budget
The first step is to help them create a budget that is realistic and achievable. This should include setting a goal for how much money they want to save each month and listing all of their monthly expenses. Once they have a budget in place, they should be encouraged to stick to it. This means avoiding impulse purchases and shopping around for the best deals. They should also be reminded to save any extra money they have left over at the end of the month. Finally, it is important to provide ongoing support and encouragement to help them stay on track. With these steps, they should be able to stick to their budget and reach their financial goals.
Lessons & Activities
We need to teach them that making mistakes in the comfort of their home, could greatly impact their future decisions by giving a sense of importance coming from the use of money. Researchers from the University of Minnesota suggest focusing “children’s education about money on the concepts of earning, spending, saving, borrowing, and sharing.” The University of Arizona doctoral student Ashley LeBaron said in her studies that “Practice Makes Perfect: Experimental learning as a Method of Financial Socialization.”
Software Applications for Teaching Kids About Money
Miata Edoga, president of the financial education company Abundance Bound, told Parentology, “We don’t want our kids to be afraid of spending, or be afraid of managing credit. We want them to feel confident in their ability to negotiate successful financial lives, to come at money from a place of power, rather than fear.”
The information age ushered in new media teaching platforms and introduced the world to the “digital native.” New educational apps for kids are launched regularly. These technological tools use interactivity and gamification to make financial concepts fun for children and teens, Additionally, by Educating kids about core personal finance topics, these apps simulate the digital-era experience of using credit and debit cards, mobile payment methods, and online banking.
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C. Lynn Williams, #MsParentguru
Parent Coach, Author & Speaker
Entry filed under: Parenting. Tags: #kids, father, money management, mothers, Parent, parenting, teens.
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