ORLANDO, Fla. – A survey conducted by Greenlight found that 74 percent of teens don’t feel confident about their financial education.
Another study found that four out of five parents wish they learned more about money as a kid. So, how can you raise kids who are financially intelligent?
A study from the University of Cambridge found that lifelong money habits are largely established by age seven.
The researchers discovered that kids observe money behaviors and attitudes at a very early age – and they imitate what they see. The good news is you can help your kids develop a savvy money mindset.
First, use effective language. Be sure to communicate that you are in control of your financial situation.
Instead of saying “we can’t afford that,” try, “that’s not how we choose to spend our money. we want to put savings first.”
Next, take advantage of teachable moments. For instance, when you’re shopping, point out discounted items and show your kids how much they can save by purchasing something on sale.
Also, help your little ones create a budget! One way to do this is to give them small, regular allowances for chores. Then, help them divide their earnings into needs, wants, savings, and charity, with dedicated jars for each.
Experts recommend encouraging kids to put between 10% and 20% of their new earnings into savings.
Experts say it’s also important to train your kids to avoid impulse purchases. Encourage your child to wait at least a day before they decide to buy anything over $15.