Primerica

Mar

29.18

Teaching kids to have a healthy view of money provides them with an essential life skill — and if you’re a parent, you probably want to ensure that your children are set up for success when dealing with financial matters before they leave home.

When it comes to financial literacy, U.S. school systems are struggling. Only 20 states currently mandate that high school students take a course in economics and only 17 require them to take a personal finance course.1

What’s more… less than 20 percent of teachers say they feel competent to even teach personal-finance related topics!2

Bottom line? Financial education starts at home.

Here are five ways to encourage your children to develop positive money management skills:

Make sure your own financial house is in order. Children learn by example. Take stock of your own financial habits. If you think you may have some weaknesses in certain areas (outstanding debt, no emergency fund, etc.), you could consult the assistance of a trained professional by contacting a Primerica representative today.

Save coins in a clear jar. Drop change in a clear jar so your child can see the accumulation of a little becoming a lot over time. Make each deposit a learning experience. Once the jar is full, the two of you could make another activity by rolling the coins (banks still accept rolled coins) or taking them to a coin counting machine at a grocery store (these usually charge fees).

Teach money with books. Invest in children’s books that tackle the topic of money management. There are plenty of colorful and creative ways writers and illustrators have found to approach the subject of personal finance.

Help them shop smart. Children can learn a lot from trips to the grocery store. Use shopping trips as learning opportunities to make smart financial choices. Check labels and discuss what makes sense and what doesn’t. Talk with your child and let them help you weigh options and make choices.

Let them manage their own money. Aside from an allowance, which can instill the value of work and money, think of ways your child can manage money you’re already spending on them. Set up budgets for back-to-school shopping, extra-curricular activities, for party planning, or when buying anything new and let your child make the financial decisions that affect him or her.

1 CouncilforEconed.org, “Survey of the States,” January 2016
2 WSJ.com, “Should College Students Be Required to Take a Course in Personal Finance?” March 19, 2017
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