Teach kids about money early on for fewer debt problems later on.

create a budget with your kids

The times they are a changing – in a good way. Recent studies show that an increasing number of kids in Canada are eager to learn more about how credit cards work, what things cost, and why. They also want to know about how to save money and create budget. That’s a far cry from a generation ago when kids didn’t give much thought to money aside from how much they could spend.

Teaching children to live within their means, set savings goals, and spend wisely is as important to education as any subject supporting life skills.

It’s encouraging to know that financial literacy is growing among kids because the more money smarts they have, the less likely they’ll be to experience debt problems later in life. Truth is, curiosity about money – and openly sharing financial information and knowledge – is healthy for all family members at all times. Teaching children to live within their means, set savings goals, and spend wisely is as important to education as any subject supporting life skills. After all, financial literacy and budget creation affords kids wisdom for practical application every day of their lives.

It’s true Canada still has work to do to get more kids on the financial literacy bandwagon. But the growth trend for more knowledge shows we’re on the right track. At this rate, who knows where we may end up. Imagine if Canada could boast of having the most financially literate kids in the world? It would only add to the country’s current reputation for having one of the best banking systems and soundest economies on the planet.

For parents seeking tools to help teach kids about money, there’s a great book called Money Savvy Kids.

Programs dedicated to smart personal money management and budget creation are now being added to school curricula. So parents continue to play the main role in teaching their kids about subjects such as creating a budget, tracking spending, and taking steps to save in the context of short term, mid-term, and long- term goals.

For parents seeking step-by-step tools to help teach kids about money, there is a great book to explore called Money Savvy Kids, authored by personal finance expert Gordon Pape and his daughter, Deborah Kerbel. The book offers financial lessons applicable to youngsters from age five to 17, with the father-daughter team taking a fun approach to the learning process. As well, the two provide plenty of information about online resources and books for thoughtful parents.

In terms of financial coaching for kids, parents need to practice what they preach because that’s what children absorb most.

You should also check out a great book by Robin Taub called A Parent’s Guide to Raising Money-Smart Kids, published by the Canadian Institute of Chartered Accountants. The book explores why it’s important to help children become financially literate and describes methods for educating children about money.

In terms of financial coaching for kids, parents need to practice what they preach because that’s what children absorb most. Meanwhile, parents have to be aware of their own limitations regarding what they know about money and its many ins and outs. Parents should be confident about their knowledge of personal finance. At the very least, basics relating to budgeting, goal setting, and credit management should be understood by all givers of financial advice.

Beyond these matters, parents can turn themselves into financial wizards by taking advantage of financial literacy pro- grams such as Credit Canada’s Financial Coaching Series. Through the program, parents can become experts in personal financial management. No matter how much or how little you make as a working person, you can create a budget, save, and invest money like a pro – and set a great example for your kids.

Source:  CREDIT CANADA on JULY 29, 2015

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One thought on “Teach kids about money early on for fewer debt problems later on.

  1. thesimplemortgage says:

    Yes- couldn’t agree more. Good read!
    Best,
    Phil
    http://www.thesimplemortgage.co

    Like

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