Using everyday events to teach my kids about money was fun and I felt it will help them acheive the level of financial success that they desire.
Los Angeles, CA (PRWEB) November 25, 2011
With the busy schedules that most parents face daily, many forget to teach their kids about money. The consequences of not providing children a financial education can be seen every day on the news: bankruptcies, foreclosures and debt problems are just some of the problems associated with financial illiteracy.
The National Financial Educators Council, an organization advocating for youth financial literacy, provides tips for parents to help teach their kids about money. The three tips covered below can be a fun activity for parents to do with their children while passing along essential financial literacy lessons.
Before the Black Friday shopping begins, parents are encouraged to sit down with their children and write down a budget and decide upon the maximum amount they are willing spend while shopping. Parents should explain that with each purchase made it will limit other purchase options. This tip can improve children’s financial capability while helping families stay within their Black Friday shopping budget.
Parents are encouraged to leverage the time shopping to teach their kids about the marketing messages that surround them. From the moment newborns are exposed to media outlets, they are inundated with advertiser’s messages to “buy, buy, buy”. As families shop and look at the different marketing messages, teach the children to evaluate the advertising by asking ‘what are they trying to convince me of’, ‘who are they targeting’ and ‘what does this goal of this ad’. Following this tip can help your child evaluate advertisements logically, instead of emotionally, and may help them avoid purchasing things that they haven’t thought through.
During the checkout process offers another valuable opportunity to share financial literacy lessons with children. If you are making a purchase with a debit or credit card, take a moment to explain the difference between the cards. This conversation can branch into how credit card companies make their money and the importance of keeping debt levels low.
These tips were meant to break the ice and help parents to open up the lines of communication with their kids on the topic of money. Sharing these simple strategies with children can motivate them to save money, build good credit, avoid debt, start investing young, and achieve a state of financial independence. The NFEC has a complimentary guide available to help families in their effort to improve the financial capability of their children – ‘Family Money Talks – Ten Talks You Must Have with Your Children’.
The NFEC is a social enterprise that is an advocate for improving the financial capability of our citizens. Providing universities, schools (K-12), colleges, non-profit organizations, financial professionals and individuals turnkey financial education resources is how the NFEC addresses the financial illiteracy epidemic plaguing people globally.