As an adult, you may have had tough learning moments when it comes to financial management. It could have been when you failed to pay your rent on time or got too deep in credit card debt. To keep your children or grandchildren from making the same mistakes, you should begin teaching them financial literacy as early as possible.
Studies indicate that by the time we are seven, a lot of our fiscal behaviors are instilled. If good habits are not established during this formative period, our kids or grandkids may struggle to learn proper money management when they grow up.
So, what is the best way to impart these valuable money skills in a way that sticks?
First, try to give them an allowance for work they do around the house. Making them earn money gives them a sense of ownership over what they have to spend. In addition, making them pay for the things they want, such as a new toy or candy, with their own money will teach them the value of saving and spending wisely.
In addition, try to make saving and spending into a game. Worrying about the numbers and chores won’t excite them about the lessons you try to teach them. If you want your kids or grandkids to retain the information you teach them, making it exciting and fun can help you do so. Teach them board games like Monopoly or Payday. Games like these can help them make the mistakes they need to make in order to learn, but instead of getting into credit card debt, they simply fall behind in the game and learn to try better money management skills to win the game next time.
And finally, open a bank account for them to start using financial tools to get them to save sooner. You can also utilize a variety of new apps that are designed to provide kids with a safe allowance with a debit card.
Teaching the next generation about financial practices is crucial in teaching them how to be financially independent and can also help protect what you leave to them. Contact us at (540) 720-5656 to get started with a financial advisor to build or enhance your retirement and legacy strategy.
Source: https://www.investopedia.com/everyday-activities-that-can-teach-financial-literacy-to-kids-5091909
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
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Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.