We’ve spent lots of time here lamenting the fact that our financial IQs are so low. There are lots of possible solutions out there, but perhaps the best one is this: Make financial literacy one of the very earliest parts of your children’s education.
This Money Management column from the MACPA and the American Institute of CPAs offers some suggestions on how to do this:
- Give your children some financial responsibility along with their allowances. Let them make decisions about what to do with their money … and allow them to make mistakes, too. Those are often the best lessons.
- Encourage them to save some of their allowances. Help them make goals and explain how they can reach those goals by saving part of their money. You might even consider opening a savings account for them.
- Set rules about what they are expected to do with their allowances. “It may be meant to cover splurge items, such as new toys or pizza after school with friends,” the article explains, “or you might ask them to chip in on other expenditures, such as equipment they will need for a sports team.”
CPAs themselves offer some fantastic advice how how to make financial literacy a family affair in this YouTube video:
What financial advice works for your family? Let us know, then check out these other financial literacy resources: