It’s back to school time! If you have kids, you may be close to finishing up a flurry of shopping. While you’re spending all that money to give your kids a good start to learn this year, are you also spending time to give them a good start with money?
Although the money management skills of American youth is very weak (73% of high schoolers failed the last Jumpstart Financial Literacy Test), there is hope! Parents have an incredible influence over their children (even their tweens and teens!), and they have the greatest power to make their kids money smart.
Most kids actually value their parent’s advice when it comes to money. In fact, 94% of teens said they look to their parents for money information, according to the 2001 Parents, Youth, and Money Survey. This means that parents have the power! So what can you do?
First, be aware of what you model. Kids learn far more from watching parents than from listening to their instructions. Do you keep a budget? Do you save regularly? When you shop, do you buy on impulse? How’s your credit card debt? Your retirement plans? Take time to review your own financial habits to be sure you want your kids to copy them.
Second, have intentional conversations with your kids as money comes up day to day. Sliding a debit card at the grocery store? Tell your kids where the “magic” money comes from. Saying “No” to a purchase? Talk about your savings goals and help your kids make their own goals. Going on vacation? Tell your kids how glad you are that you saved up money to have a great time together. Better yet, have them help save for a fun activity to do together.
If your kids are young, try taking clear plastic jars and turning them into banks: Save, Spend, and Give. When kids get a little older, add a fourth bank: Invest. This one is for long term savings, like college. As they grow, you can turn the saving and investing jars into bank accounts at your local bank.
You are your child’s most important teacher. Take time to make money conversations part of your family life. As your family gears up for back to school, make sure your kids have one skill they will definitely need: money management.
Here are a few resources for talking to kids about money:
- Parent Resources: Find money themed books to read to your small children, activities for K-12, and more. http://financeintheclassroom.org/parent/
- 4-H Build a Million Club: Activities and curriculum to do with your 3rd -12th grader so they’ll be ready to build their million. http://www.extension.org/pages/61531/4-h-build-a-million#.Ugt9H5LVAnQ
- Ohio Saves: Sign up to be an Ohio Saver for free resources to help you save money and reach your goals. www.ohiosaves.org
- Manage Your Money: This self-paced workshop can help you brush up on smart money management. http://go.osu.edu/mym
Sources:
Employee Benefit Research Institute. 2001 Parents, Youth, and Money Survey. http://www.ebri.org/surveys/index.cfm?fa=pym
Jumpstart 2008 High School Financial Literacy Survey. http://jumpstart.org/survey.html
Author:
Betsy DeMatteo, Family & Consumer Science Educator, Ohio State University Extension
