If kids are able to learn the key concepts early on, which include saving, budgeting and the value of the dollar, they have a better chance of growing into financially savvy adults.
Los Angeles, CA (PRWEB) April 28, 2016
It is never too early to start learning about saving and budgeting. In response to National Financial Literacy Month, national non-profit American Consumer Credit Counseling provides parents in California with the most important money lessons for their children.
“Although it is often difficult to discuss money with your children, it is key in ensuring their ability to make financial decisions in the future,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “If kids are able to learn the key concepts early on, which include saving, budgeting and the value of the dollar, they have a better chance of growing into financially savvy adults.”
According to the National Financial Capability Study, California was named one of the most financially capable states in the United States. Overall, Americans tend to exhibit very low levels of financial literacy knowledge and have difficulty making finical decisions. Of the respondents from California, 58 percent were unable to answer more than three of the five financial literacy questions correctly. In order to help parents teach their children about money, ACCC offers the most important money lessons for kids:
1. Identifying Needs vs Wants – It is important that children learn the difference between wants and needs. Needs include items such as food, clothing and shelter whereas things like candy, toys and entertainment fall under wants. Children should be taught to think and identify if what they are looking to buy is a need or a want, and if the purchasing can be postponed for when the money is available. As part of this process, children can be encouraged to assess their financial goals to determine if they are realistic, achievable and worthwhile.
2. Save and Plan – Children should learn how to keep track of their spending so they can plan their financial future. If your child has a job, explain the importance of putting a portion of the check into a savings account. Working age children should learn how to choose a bank and prepare for their financial future. For more detailed information, students can download the ACCC Financial Workbook.
3. The Value of the Dollar – It is important that children learn the core concepts about money and finances early on. Children should be introduced to the concept of money during preschool. At this age, children can learn to identify, count and sort different types of coins. By kindergarten, children should be able to differentiate between the coins by how much they are worth. Learning about money can be fun, take advantage of casual trips to the grocery store as an opportunity to introduce new money concepts.
4. How to Budget – Budgeting is key. Children must know that they cannot buy everything when they want it. They must plan out how they can save the money to make the purchase without causing a financial disaster. Parents can introduce a budgeting worksheet that shows income and expenses so they can learn what money is being earned and spent.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management and debt relief through education, credit counseling, and debt management solutions. In order to help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loans, youth and money, homeownership, identity theft, senior living and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit TalkingCentsBlog.com.