April is Financial Literacy Month...
When you have financial literacy, you have the knowledge and skill to manage your own personal finances in order to achieve financial stability for your lifetime. Unfortunately, our youth lacks educational courses on maintaining sound financial habits. There is a great need for financial literacy among the adolescents in our country, and thankfully, April has been dedicated to shining a light on this need. The more we educate, the less debt and unnecessary spending we will see. Use this spring as a time for your family to clean up your household finances, and teach your children some important steps to financial stability.
Begin in the early years of childhood:
- Shop with your children for a toy, and show them how to compare price and value
- Give an allowance - this is an important first step toward financial responsibility
- Give your kids incentive to save by matching what they save
- Take them through your budget to show them how the family spends and makes responsible decisions
- Teach teens the basics of investing - open an investment account for them, and have them contribute 10% of earnings if possible.
- Open a college savings account to contribute to - periodically check the balance and review with your child
- Work with you teens on how to establish good credit
Be a role model for your children and teach them the importance of responsible money management. Paying off all your bills on time and staying out of financial trouble could set the right tone for the next generation.