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Jul 21

Want to improve your child’s financial literacy

Posted by at 13:18 | Default | Comments(0) | Reads(576)

One fact is that high schools are only concentrating on teaching students of subjects that will only help them to pass exams and graduate. However, when it comes to the most important lesson of life, which is associated with finances, there is little or no information at all. In most high schools, kids learn about finances briefly without an inside story on how to save, invest, and plan the little you earn. Therefore, when they start earning, they start trial and error as they try to find their ground. This should not be the case. Parents, therefore, must wake up and lead in educating their young ones money matters.

Although your, child needs to be informed and ready for the market, graduating with the best grades alone is not enough. This is because there are lessons that will not help the child in life while the most valuable lesson was not taught. Here are a few ways on how to improve your child’s financial literacy as you usher him into the moneymaking industry.

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1. Learn together

As a parent, it’s obvious that you went through the same system and you are sure you did not get informed of the same. However, this does not mean you cannot help your child to make a difference. They should not follow the same direction you did. Therefore, you can start by learning different word and topics that are important, then take the gospel home and learn together with your kid. This way you will not only be helping your child on how to handle finances in future but also help yourself improve where you went wrong.

2. Start early

A habit develops culture or character. If you want your child to have a successful routine with smart money handling skills and strong work ethics, then you must start depositing early. When your child is still young, let them understand the importance of being financially literate. Engage the child in platforms that will help build a strong foundation at an early age, and you are, sure they will have the basics even when they are old.

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3. Set goals and budget

Let every member of the family set their own financial goals. This to be exciting, you can turn it into a contest with everyone onboard. Reward who has the best financial deals or the most savings in their account to motivate the rest. Additionally, ensure that everyone learns the importance of having a budget and setting goals towards meeting the budget. Some of these basics will help your child when s/he starts earning some money in future.

4. Walk your talk

Always remember that whatever you say, your child will observe to see if you are up to the standards.  Therefore, you must ensure that every detail you share about finances, you can meet. Although this can be a challenge especially if you are doing it for the first time.  However, you must ensure that your kid does not follow through to the wrong financial route.  Ensure to do the best and lead your child appropriately. Even if you will not be able to fulfill all your goals, ensure that your child can trace your efforts.

5. Talk to schools
Taking your child through financial steps alone can be tough. Although schools will never teach finance 100%, you can encourage them to concentrate on specific subjects and topics that give details on the same. In most schools, finance is not independent and therefore, it's only taught in an over view. When you talk to the school, you will not have so much to do while at home since the teachers will set the foundation for you to build on. However, this does not mean you take rest and leave the whole finance case to the school; you must take the time to play your role.

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6. Involve an expert

Don’t make the mistake of taking all the pressure alone. If you don’t have an answer to something or you are not sure about it, it’s time to seek help. Involve an expert in specified areas. There are people with answers to what you don’t know. Let someone help you to vary your options, advice on the best bank account for your child, how to budget and so on. This will help you relieve yourself and know better on what you did not know.

Conclusion

Remember all the steps that you take your child through are meant to help him. Her understand the basics of managing their money. Therefore, when they start earning, it’s always important to remind them what to do, when and how. This way, you will ensure they have a better understanding of what you have beenworking hard to teach them. Lastly, let your child understand the importance of keeping records on every coin they spend for easy accounting.


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