One cannot stress enough the value and importance of taking the time to teach financial literacy to children. When we produce an entire generation of children that have no idea how to build their credit, manage their budget and lack investment knowledge that means we produce a generation destined for poverty and financial difficulty.
Recent studies show that over 70% of college graduates plan on moving back home with their parents after they graduate and many will stay there into their mid thirties simply because they lack financial literacy skills. Parents if you don't want to be embarrassed when you tell your friend that your 35 year old kid still lives with you, then pay close attention to this article.
By teaching financial literacy to children we give them the opportunity to consider their futures more carefully. When we preach the advancements made possible by going to college we often neglect to show them some specific examples or give them the other skills that will maximize their investment in a higher education. We often fail to show them how to take the extra money they earn with a college degree and get that working for them by establishing a savings and investment plan.
Here are 5 tips to ensuring you empower your children or students with practical money skills.
1) Help them understand the correlation between their desired lifestyle and their knowledge of money.
2) Start your children saving money when they are young.
3) Set financial goals as a family and involve your children in financial decisions.
4) Have them open their checking, savings and brokerage account immediately.
5) Enroll them in a professional financial education course.
Ensuring that we teach financial literacy to children is actually the key to preventing future financial problems for our children and for the world. If we can teach the future generations how to manage money and how to make it appropriately we offer the entire world a better financial outlook. Each child will contribute to the financial ruin or the financial success of our world's future.
We can take the time now to teach financial literacy to children or we can end up teaching it to today's kids when they turn into tomorrow's adults. By then it can be too late. It is a lot harder to get out of debt than to avoid it entirely in the first place; that is why we must teach financial literacy to our children before they leave home.
Unfortunately, our children will not be able to count on social security or Medicare. On top of that, due to our debt problem and the almost certainty of inflation, there will be an accelerated cost of living that is projected to be quite significant. Unfortunately, projected incomes for many of today's minimum wage jobs do not coincide evenly with poverty projections.
Those issues may be disheartening but by taking the time to teach financial literacy to your children you equip a child to move into adulthood with confidence and abilities that will serve them for the rest of their lives.
It's not easy to grow up in a financially unstable world. By making this mission a top priority we can count on the financial success of tomorrow.
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