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Teach Your Children Well
Every family has its own way of dealing with money. Like Jeff Opdyke outlines in this Wall Street Journal article, teaching kids of all ages about money can be tricky, but it’s crucial. Here are a few tips to help you out.
Identify key areas of concern.
Student loans, credit card debt, and poor savings habits are common problems. These issues won’t right themselves without the right financial education. Talking about the financial challenges and responsibilities that your child will face now can make it easier to handle them in the future. After all, who do you think they’ll turn to if they run into financial trouble?
Lead by example.
The next time you decide to make a big purchase, clue your kid in. How did you decide that this was the right time to buy? How long were you saving for the purchase? Is this an investment or expenditure? Simple questions like this can help your kids understand that a lot more goes into buying than simply wanting.
Figure out a teaching strategy.
There are many ways to teach your children about finances. Some might opt to give their kids a hands-on experience, others might look at it as a time to bond. If you aren’t up for the task, or want your child to have an extensive understanding about money, why not consider finance camp? It might sound odd, but more and more kids are spending their summers learning how to save, manage money, make investments, and much more.
Your kids might not be interested in their financial future right now, but one of the best things a parent can do is to provide their children with an adequate understanding of money. You never know, they might thank you when they’re older.
Comic created by Colin with the help of BitStrips.com. (Click on the image for a larger version)
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Interesting post. We realized we were not including our children in our buying decisions at all when just last week my 14 year old said to me, “how do you afford to send the 3 of us to camp? How much money is it and how do you do it?” At first I was taken aback but then I thought about it and realized it was a great question. It showed that he is finally becoming aware of finances and it also showed they we have some room for improvement!