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Debt is a problem that is not going away quickly. To see real change, we need to address the behaviors that contribute to the mismanagement of credit.
For our children, learning how to save will pave the way for a lifetime of solid personal financial management.
Here are three tips that you can follow with your kids to get them started:
1. If your children are of age, you can help them set up a bank account of their own. Use this account to help them understand the principles of interest and why depositing even a little every month will quickly help their savings to add up. To really motivate them, choose a specific item or event that they can target to save for, such as a toy, game, or trip.
2. Involve your kids in the family finances. Have your kids help you do the grocery shopping by creating a game. Give them their own segment of the grocery list and a budget. They have to find the items on the list and if they find them for less than the budgeted amount, they can use the savings to buy a piece of candy or save it.
3. Chores & Allowance are pretty old concepts for most of us, but they hold up well in teaching kids how to save. It is pretty simple: in exchange for performing chores around the house, the child receives a specific allowance-they can earn more allowance by doing more chores, etc.
Arming your children with the basics of financial management gives them proven skills to help succeed financially in the future. Do you have any ideas on how to help kids learn about financial management?