Experts share three ways to teach your kids financial literacy.
Outline your goals.
This can be a fun exercise for both the child and mother. Perhaps your child is younger and wants to save up for a new toy, or they’re older and are saving for a car. Either way, identifying the goals aligned with your future is key to ensuring you’re properly prepared financially. For parents, maybe they’re saving for a new house or a family vacation but having this discussion ahead of time is the first step in achieving both short-term and long-term goals.
Treat your savings like a bill.
Once a goal has been identified that you need to save for, budgeting accordingly is key. It’s often best to treat your savings like another bill. Whenever your child gets their allowance, they should instantly put a certain amount of it into their piggy bank to save for their future purchase. Likewise, a certain percentage of the parent’s paycheck should go straight to a savings account, to ensure it is being appropriately allocated to.
Receive sound financial advice.
For children, this may involve talking with their parents before deciding to save for an item or making a purchase. For the mother, this involves speaking with your financial advisor, who are there to educate and guide you in making decisions that you understand and are comfortable with. Women should ask as many questions as possible and make sure they understand every detail of the portfolio and ensure that it reflects their financial goals.
By helping your children take control of their finances as early as possible they will understand how to grow and protect their savings and they will be more likely to achieve financial success. Likewise, by implementing these tools for yourself, you will feel more in control of your financial life. You have the opportunity to shape your future and the legacy you leave.