Just as you teach your children to read books, you can help them become financially literate as well. Here are some ideas for your financial lesson plans.
Teach three and four year olds to count their change; it can be a financial lesson, as well as a mathematical one and help them become familiar with the concept of money.
Experts recommend starting an allowance when your children reach grade school when number concepts are mastered. An allowance will help them make independent financial decisions and install a good work ethic.
As they grow older, you can teach your children the importance of sticking to a budget by giving them a set amount each month to pay for some of their own expenses. If they need an advance, consider it a loan and charge them interest.
Explain Money Matters
Encourage your children to monitor what they have saved by opening their own savings accounts. You may require them to save 10 percent of their allowances and monetary gifts, and you might consider matching the funds.Â Take advantage of everyday opportunities, too. Show them how to calculate the tip in a restaurant, help them find the best grocery deals and explain how a credit card works.
From Pennies to Paychecks
Once your teenagers earn regular paychecks, open a checking account. Teens can take charge of their funds and track spending habits. An ATM card or VISA CheckCard gives convenient access to cash and maintaining their own accounts will give them confidence to handle their finances as adults.
Teaching your children to be smart money managers will help ensure their future financial stability as adults.