- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
The Importance Of Financial Literacy For Youth
Financial literacy isn’t something only reserved for adults. The ability to manage personal finances and make the right decisions regarding insurance, real estate, budgeting, investing and tax planning, is something that children and young adults should learn. With the amount of consumer debt increasing in Canada, your children should learn how to manage their money so they develop positive financial habits before earning an income as adults.
Financial Literacy For Kids
Most children have a savings account, yet possess no knowledge of how to use it properly. Teaching your children about interest and how it works will lay the groundwork for their financial literacy. If you have any trouble trying to explain personal banking to your children or do not know the best way how, you could set up a meeting at the bank and have them sit in for a discussion to help them understand the basics or look for some of the amazing free programs at your local library or look to the Financial Consumer Agency of Canada for a variety or resources and workbooks.
Why Learning About Finance Is Crucial For Young People
Whether your child gets their money from an allowance, or from a part-time job, it’s crucial that they understand how to manage their money. Showing your child how to save and budget their finances when they’re young will prepare them for the future. A great example is, if you have a teenager who has activated their first credit card, explain the importance of paying it off on time and how to keep their balance low so they’re not being exploited by high interest rates. It is also important to keep an close eye so that you can hopefully see the warning signs before their debt becomes unmanageable.
Lead By Example
Try to set a positive example at home of how you use your money. This does not mean you can’t make mistakes and have financial difficulties. Instead it is simply important to talk to your children about financial situations such as how you pay bills (even though they may not have any for quite some time). Show them how you break down your monthly income to cover everything from paying the cable bill to groceries. Removing the stigma of feeling like you have to keep your finances to yourself as well as the shame often associated with financial difficulties is an important step in helping your children learn, ask questions, and discuss their own financial problems fearlessly.
Explain The Difference Between Wants And Needs
It is important to impart to your children the difference between wants and needs and encourage them to have good financial sense. Explain that while they may want that new gaming system, they don’t need it, because their current gaming system works just fine. A good example to show them would be with your vehicles. You may have a 2011 model sedan and dream of upgrading to something more current, however, it is not essential because your current car gets you from point A to B successfully. Getting your child involved in these decisions or in planning a “no money” activity can be fun and will naturally reinforce good budgeting. Introducing them to cheap or free alternatives, such as all the e-content, movies, books, and activities available is your local library, can teach them good habits they can carry forward into the future.
If you show children the benefits of financial literacy in their youth, they will carry these lessons with them well into adulthood and stave off debt. Think of it this way, the more you teach them now, the less financially dependant on you they’ll be later.