Every parent wants to see their children succeed academically, socially and financially too! But a recent study found that 69% of parents are reluctant to talk their children about money. Financial professional Mindy McIntosh talks with Michigan’s WJRT about how we can make finances less taboo and more “can do” and help our children be financially successful.
- Talking about Money – With little kids, you should focus on talking about money and how you use it. Start talking about what jobs are and how to earn money. Use yourself or your spouse as an example.
- Allowance – As children get a little older, you can start giving them a list of chores and a set allowance each week. A good rule of thumb for how much to give your children is to use their age. If they are 5, they get $5 for completing their chores that week.
- Save Money – As your children get older, you can start getting creative with how they can earn money, like babysitting, raking leaves or starting a lemonade stand. Whether they earn the cash from odd jobs or receive a weekly allowance, now is the time to teach them how to save it.
- Budget Money – This is also a good age to explain a budget and help your kids really understand the importance of having one and sticking to it. Use your own household as an example. Explain the different kinds of bills you have to pay and the consequences of not paying them.
- Student Debt – The average graduate owes more than $37,000 in student loans. While your kids are in high school, it is a good time to talk with them and have a conversation about student loans and more importantly not misusing them. Remind them they should only borrow what they need and use their loans responsibly.
- Credit Cards – About the time your child goes off to college, they start getting endless credit card applications. It’s a good idea to build your child’s credit, but only if you do it correctly. If your child chooses to have a credit card, help them pick one that has a low fees and a low APR.