| It took America's economy taking a nose dive for | | | | eventually providing for you when you're unable to, |
| financial education for kids and teens to finally | | | | or don't want to, work anymore. Explaining the |
| become a 'hot topic'. Even still, financial literacy | | | | concept of compound interest or compound growth |
| continues to take a back seat to the classic reading, | | | | gives your kids a sense of what's possible. |
| writing and arithmetic directives from up above. | | | | Tip #4: Give your kids plenty of opportunity and time |
| So, until financial education for kids and teens | | | | for "money practice": spending, saving, investing and |
| becomes the critical life skill it is, here are five tips | | | | donating. Practice is how we master most everything |
| parents can use to prepare their youngsters for solid | | | | and plenty of financial practice now gives your kids |
| financial success as adults. | | | | the chance to make mistakes while the stakes are |
| Tip #1: Talk to your kids about where money comes | | | | still low. It also gives them time to develop their |
| from. Explain that money usually comes from work, | | | | self-esteem and confidence with money. |
| i.e., trading your time and energy for the green stuff | | | | Tip #5: Help your children learn The Language of |
| that supports our lives. Even more importantly, | | | | Money. Learning financial terms and definitions is the |
| explain that money doesn't have to always come | | | | first step to successfully navigating the adult world of |
| from their work; it can also come from putting your | | | | finance. There are lots of great money sites on the |
| money to work for you. | | | | web. A fun, simple activity you can do with your kids |
| Tip #2: Familiarize your children with banks - not the | | | | is to financial websites and together, choose one |
| piggy kind, but the institutions. A bank is the first | | | | financial terms to learn each day. Then, you and the |
| place we go outside of the home to save our | | | | kids look for the new terms in the financial sections |
| money. Kids need to understand how banks work so | | | | of newspapers and magazines. You'll be surprised at |
| go with them as early as possible to get them their | | | | how quickly your children learn to speak the language |
| own savings account. Then, help them develop the | | | | of money. |
| important habit of depositing money into that | | | | These five tips can help you create financially savvy |
| account on a regular basis. | | | | adults out of almost any child. And please remember, |
| Tip #3: Talk about what it means to 'invest' money, | | | | they aren't going to learn this stuff at school so it's |
| not just save it. Investing involves the purchase of | | | | your job as a parent to make sure they learn it at |
| different types of assets (real estate, stocks, | | | | home. |
| businesses) so that money grows over time, | | | | |