It is time for parents to step up and take the lead in helping their kids learn the seven money skills. Every young adult should know these before leaving for college.
-The commitment of making reliable spending decisions: Nothing keeps a child on top of consumers than having to get by on $10 a week.
-The skill of maintaining financial information. Every teenager should have a bank account with his or her personal money invested and know how to manage it.
-Reward of meeting financial goals: Kids need a reason to spend less, whether it’s saving to buy popular electronics or just going out with some friends. Maybe think about matching all or part of what they put aside.
-The sense of saving: Small amounts saved when your young will eventually grow into a stock pile of money. Just be patient.
-The value of savings: Kids must understand the importance of having an emergency fund for unexpected expenditures. Think about opening both a checking and savings account in their name. One being for these emergencies.
-The gift of giving: Teach them to make a difference. Giving means money, time and talents.
-The cautions of borrowing and paying interest: take compounding and look at it from the negative side. Money works against you if you borrow.
It’s our responsibility as parents/teachers to make sure they have the tools to succeed in that environment. We have the same duty to make sure they are equipped with the information needed to have secure financial futures as well.