How to Raise a Financial Whiz
According to a new BankRate and CreditCards.com survey, 74 percent of parents assist their adult children in paying for their living expenses including rent, cellphone bill, utilities and transportation. To avoid being grouped into the 74 percent, it’s important to teach kids critical financial skills while they are young so that they can make responsible financial decisions on their own as an adult.
Below are some tips from Gregg Murset, CEO of BusyKid and certified financial planner, on how to teach young children critical financial skills.
Educate yourself first. How can you pass down the latest knowledge on financial skills if you aren’t up to date yourself? Check bank websites and other finance websites to read the latest news. If you find yourself making any changes to how you handle your finances after reading the news talk to your child about what you were doing and why it wasn’t working and the changes you plan to make.
Make sure go beyond the basics. Finances go beyond just budgeting and paying bills. Make sure to introduce kids to key concepts like credit, loans, interest, mortgages and retirement funds.
Every day learning opportunities. Whether it’s paying a bill online or doing the weekly grocery shopping, there are financial lessons that you can teach your child in everyday activities. When a bill is due sit down with your child and explain what the bill is for and your method of payment. At the grocery store give your child a list of items you need along with a budget to stick to and let them swipe your card or hand the cash to the cashier when checking out.
Chores and allowances are beneficial. Paying your child to do chores can be helpful in preparing them for a real job someday. Work ethic, direct deposit, budgeting, opening a bank account and taxes are all lessons that can be taught during the process.