The last few days we’ve had a theme: educating your children about their finances. The holidays are a perfect time of year to teach children about money. Whether you take them gift shopping or they receive money as a present, children of any age can benefit from learning money management skills.
It also helps that it’s Financial Literacy Month.
Jane Rooney, Canada’s Financial Literacy Leader, is making a point of educating our society and most importantly: our children.
As a parent you can start educating your children when they’re young. Now this may be a struggle because let’s face it parents, most of you weren’t made to be teachers on money. But beginning with basic concepts such as counting and recognizing coins and bills helps. Teach them about credit and debit cards. How to manage them. What to do and especially, what not to do. Naturally, discussions about needs versus wants, budgeting, income, and expenses will come up.
When talking about saving money with your kids, discuss goals that may appeal to them. Tell them if they save their allowance they can get that video game or go to the mall with friends. As children get older discuss saving for longer-term goals, like their education and first car. Start a savings account with them and throw a percentage of their allowance into said account. This will establish a habit that will follow them into their later years.
It is never too late or too early to teach your children the necessities they need to excel in life.
Be sure to use the many tools made available to you. Especially your accountant — AKA us! If you don’t have an accountant or a wealth adviser, take advantage of online forums such as blogs like Money After Graduation, and the Canadian Financial Literacy Database.
Have specific questions about your childs financial future? Don’t hesitate to contact us with any questions by e-mail: firstname.lastname@example.org or phone: 1.800.461.1096