3 Reasons to Teach Financial Education at Home
The current pandemic has forced parents and children into an interesting learning dynamic. Parents are learning how to be an educator and help their children in ways mostly familiar to homeschooling parent-teachers. We think parents could capitalize on this opportunity to teach their children some important things they may not learn in a traditional class setting.
Finances Happen at Home
When it comes to personal finance, there’s no better place to learn than at home. Most financial decisions are made at home. Bills show up and are often paid from home. Parents are presented with the perfect opportunity to give real-life, hands-on advice and education. Walking children through your financial process could be the start of a greater financial understanding.
Count it Out & Write it Down
As we mentioned in a previous blog post, the first step to managing finances is understanding your income and expenses. With several stores still closed and restrictions in place, now could be a great time to focus on income and expenses.
Writing these income and expenses down on paper could be a great tool to help children understand their differences and actual budgeting practices. Try having children write down all the items they think belong in each category. Parents can also create their own list and compare. This simple exercise could help children understand this much needed basic skill.
Spend, Save, Share
Children learn the most by example. Watching parents talk about and handle money often shapes their views and habits. Looking at your own finances and behavior, try taking a little time to explain how and why you make certain money decisions. Parents can explain the times and places to make certain decisions like saving, spending, or donating.
We understand that this pandemic has forced parents and their families into interesting positions. However, if parents are going to teach their children from home, we believe adding real-life personal finance lessons could help prepare children for a future of financial literacy.