Getting a head start on finances for kids
It seems like too many people in the United States grow up without learning much about finances. Only 57% of American adults consider themselves financially literate, and of that number, several are not as financially literate as they believe themselves to be.
Because only 17 states require students to complete a personal finances class before graduating, most parents cannot expect schools to teach their children to be financially literate. However, you can help them at home so they can get a head start on finances before entering adulthood.
Tips for getting a head start on finances for kids
Depending on where you live, schools might be able to help some with your child’s financial education, but there are some strategies you can use at home to help them get a head start, including:
- Let them be a part of their savings strategy — If you have been investing in a savings account for years for your child, you should let them be a part of it when you feel they are ready to learn. Show them how much you have been saving, why you have done it (college, health care, retirement, etc.) and how much interest they could earn from their savings.
Let them join you when you make contributions to any of their savings accounts so they can follow what you are doing and why.
- Do not give allowance more than once per month — If you give your child an allowance for chores, try giving them allowance on a monthly basis instead of weekly. This helps teach them how to budget their money and be responsible with it.
- Help them open a checking account — Show your teenage child how to create a checking account, use a check, use an ATM and review their monthly statements.
Talk to a ProVise CFP® professional about financial planning for the whole family
When it comes to personal financial planning, it is as important to consider the financial literacy of your children as it is to manage your own finances right now. At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can work with you to help you manage your own finances, so you have more time to teach your kids about theirs.
We can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about personal financial planning? Contact ProVise today to schedule a complimentary consultation.