Teaching Kids Money Skills

Kimberly Watson, Editor in Chief
July 05, 2012 /

For most average parents, kids and money are two subjects that are burdens, sometimes carried for most of their lives, especially in these days of tight economic conditions. The big question is therefore, how to teach kids not only the value of money, but primarily the skills in handling it!

Peer pressure is an important factor, especially when it is a case of “have” and “have not” circumstances. This makes education into the relative value of money crucial; in defining immediate needs satisfaction and those of the future.

Many parents do not have the ability to mange their own finances. Therefore, it could be a situation whereby parents and their kids could be involved in a combined effort to learn money skills. It is incumbent on parents to introduce their kids to money awareness as soon as possible, unless they have unlimited funds to waste. The same applies to teaching kids about the mysteries and dangers associated with debit and credit cards.

With the prevalence today of vast amounts of debt, parents should be more aware now than ever before, of the risks posed by over spending and not saving. Their plaintiff cries for help are mainly unheard, due to everyone else being in the same situation; or the probably correct perception that they have brought this crisis on themselves.

There are various options for kids to learn all about financial management and the examples of its need have been shown dramatically during the past years. A new Federal program has been introduced called “Money as you Grow”, which is a positive and motivational step in the right direction.

However, there are many other financial learning methods available, but an effort must also be made by the parents to influence their kids in gaining critical money management skill. This could be best achieved by their setting an example in the home and reverting to the old fashioned values and disciplines of the past.

The seriousness of this monetary situation and future awareness caused the creation of the President’s Advisory Council on Financial Capability to be established. It is designed to provide the kids of America with the basics and necessary knowledge related to money management and heir duty to accept financial responsibility.

If the program is accepted by parents and they have the will and energy to implement it with their kids; then it could resolve an inherent problem for their future. Motivating the kids within the program, could have an affect of the child teaching the parent!

 

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