Experts agree that a family that budgets together stays together. Last month I had the opportunity to speak to a group of high school students during the Great American Teach In. My presentation was on personal finance for teens. Of course I asked them if they get involved with the family finances. Many said no. But a few said yes. Of those that said yes, they mentioned that being involved helps them to better understand their parents’ finances. That of course is welcoming news to me. The family finances do help children understand the importance of budgeting and prioritizing. Many parents choose not to share the financial picture with their kids. They fear that it is too much information. But I disagree. As a teenager growing up, I understood my mother’s financial picture. She of course was a single parent. The understanding of her financial picture helped me make better decisions about spending money and I have a better appreciation for saving.
So how do you get your kids involved? Listed below are some practical steps you can use.
- Start out with a family meeting and just discuss the finances.
- When you pay the bills, have the kids sit with you and review how much each item costs.
- If possible, give your children an allowance for doing chores around the house.
- Open up a checking and savings account for your kids and encourage automatic deposits.
- Encourage your children to learn about personal finances through interactive online games. Visit the For Youth Information section of our website for more information.
As we approach the end of 2009, make a New Year’s resolution to get your kids involved in personal finance. Teach them early on the importance of making good financial decisions.
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