BUILDING HEALTHY FAMILY FINANCES: Establishing a Solid Foundation<\/p>\n\n\n\n
One of the greatest gifts we can give our children is an ability to confidently provide for themselves when they are ready to leave the comfort of home and begin their lives as independent adults. If you have young children, you may think that day is way ahead in the distant future. Yet, if you speak to just about any parent of a twenty-something, they\u2019ll tell you that time goes by in a blink.<\/p>\n\n\n\n
Beyond the basics of a solid general education, young adults need to know about money management. While it\u2019s an improvement that 21 states now require high school students to take a course in personal finance<\/a>, it\u2019s our responsibility as parents to take their financial education further at home. Regardless of their age, and whether teenagers admit it or not, kids look to their parents for examples on which to model their behavior. By taking time to include them in discussions about money while putting age-appropriate lessons into action throughout their childhood and adolescence, you can empower your kids with the tools they need for a lifetime of financial success.<\/p>\n\n\n\n You might be surprised at how young children are when they start asking for a special toy or game, but it is estimated that advertisers spend more than $12 billion per year to reach the youth market and that children view more than 40,000 commercials each year<\/a>. Good habits developed from a young age will be essential in raising financially literate adults who can make objective decisions when facing the multitude of choices available for spending money. When children are old enough to want to purchase an item, it\u2019s a perfect opportunity to begin connecting the effort and responsibility that goes along with it. <\/p>\n\n\n\n You may place a dollar value on age-appropriate chores or provide kids with a flat allowance based on fulfilling obligations on a daily chart. For example, if a child makes their bed, brushes their teeth, and puts away their toys, they can get a star for the day. A week of stars gets them one step closer to earning their financial goal. You can predetermine a threshold your child is working toward to earn the toy. As children get older, the responsibilities and rewards can increase. The important thing is that they will learn the value of earning, saving, and spending. <\/p>\n\n\n\n Once children are in elementary school, it\u2019s an ideal time to help them open a savings account and teach them how to manage it. A step up from a star chart on a refrigerator and building on habits of earning money around the house, you will be teaching them the benefit of regularly saving money. As a child goes through the process of making weekly deposits, no matter how small, they will watch as their balance accumulates into a larger amount. If they choose to spend money on an item, they will see exactly how much it impacts their savings. This is also a great age to begin involving kids in budgeting. A trip to the grocery store when they help with creating a shopping list within a specific dollar amount can be an eye-opening experience.<\/p>\n\n\n\n As your children are getting older, more money conversations can be had around the financial impact of their decisions. Some teenagers will get their driver\u2019s license and begin working part-time jobs. Post high school graduation plans may be on the horizon and the possibility of college or entering the workforce are becoming clearer. While they are bound to make some mistakes, as we all do, speaking with them about more in-depth financial topics may help them avoid problems later.<\/p>\n\n\n\n Speaking with your children about money is not a one-time conversation. An ongoing dialogue, started early, can help your kids to view money in a healthy way and have a solid foundation of knowledge to continue to develop as they age into young adulthood. If you would like more information about age-appropriate financial discussions, please contact us.<\/a><\/p>\n\n\n\n BUILDING HEALTHY FAMILY FINANCES: Establishing a Solid Foundation This is our fourth article in a 5-part series on Building Healthy Family Finances. One of the greatest gifts we can give our children is an ability to confidently provide for themselves when they are ready to leave the comfort of home and begin their lives as […]<\/p>\n","protected":false},"author":3,"featured_media":5360,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"\n BUILDING HEALTHY FAMILY FINANCES: Establishing a Solid Foundation<\/p>\n\n\n\n One of the greatest gifts we can give our children is an ability to confidently provide for themselves when they are ready to leave the comfort of home and begin their lives as independent adults.\u00a0 If you have young children, you may think that day is way ahead in the distant future. \u00a0Yet, if you speak to just about any parent of a twenty-something, they\u2019ll tell you that time goes by in a blink.<\/p>\n\n\n\n Beyond the basics of a solid general education, young adults need to know about money management.\u00a0 While it\u2019s an improvement that 21 states now require high school students to take a course in personal finance<\/a>, it\u2019s our responsibility as parents to take their financial education further at home.\u00a0 Regardless of their age, and whether teenagers admit it or not, kids look to their parents for examples on which to model their behavior. \u00a0By taking time to include them in discussions about money while putting age-appropriate lessons into action throughout their childhood and adolescence, you can empower your kids with the tools they need for a lifetime of financial success.<\/p>\n\n\n\n You might be surprised at how young children are when they start asking for a special toy or game, but it is estimated that advertisers spend more than $12 billion per year to reach the youth market and that children view more than 40,000 commercials each year<\/a>.\u00a0 Good habits developed from a young age will be essential in raising financially literate adults who can make objective decisions when facing the multitude of choices available for spending money.\u00a0 When children are old enough to want to purchase an item, it\u2019s a perfect opportunity to begin connecting the effort and responsibility that goes along with it.\u00a0<\/p>\n\n\n\n You may place a dollar value on age-appropriate chores or provide kids with a flat allowance based on fulfilling obligations on a daily chart.\u00a0 For example, if a child makes their bed, brushes their teeth, and puts away their toys, they can get a star for the day.\u00a0 A week of stars gets them one step closer to earning their financial goal. You can predetermine a threshold your child is working toward to earn the toy.\u00a0 As children get older, the responsibilities and rewards can increase.\u00a0 The important thing is that they will learn the value of earning, saving, and spending.\u00a0<\/p>\n\n\n\n Once children are in elementary school, it\u2019s an ideal time to help them open a savings account and teach them how to manage it.\u00a0 A step up from a star chart on a refrigerator and building on habits of earning money around the house, you will be teaching them the benefit of regularly saving money.\u00a0 As a child goes through the process of making weekly deposits, no matter how small, they will watch as their balance accumulates into a larger amount.\u00a0 If they choose to spend money on an item, they will see exactly how much it impacts their savings. This is also a great age to begin involving kids in budgeting.\u00a0 A trip to the grocery store when they help with creating a shopping list within a specific dollar amount can be an eye-opening experience.<\/p>\n\n\n\n As your children are getting older, more money conversations can be had around the financial impact of their decisions.\u00a0 Some teenagers will get their driver\u2019s license and begin working part-time jobs.\u00a0 Post high school graduation plans may be on the horizon and the possibility of college or entering the workforce are becoming clearer.\u00a0 While they are bound to make some mistakes, as we all do, speaking with them about more in-depth financial topics may help them avoid problems later.<\/p>\n\n\n\n Speaking with your children about money is not a one-time conversation.\u00a0 An ongoing dialogue, started early, can help your kids to view money in a healthy way and have a solid foundation of knowledge to continue to develop as they age into young adulthood.\u00a0 If you would like more information about age-appropriate financial discussions, please contact us.<\/a><\/p>\n\n\n\nWhere Should You Begin?<\/strong><\/h2>\n\n\n\n
Young Children<\/strong><\/h2>\n\n\n\n
Entering School<\/strong><\/h2>\n\n\n\n
The Teen Years<\/strong><\/h2>\n\n\n\n
Some topics to speak about with your teen:<\/strong><\/h2>\n\n\n\n
<\/li><\/ul>\n\n\n\nBUILDING HEALTHY FAMILY FINANCES<\/em><\/h4>\n\n\n\n
\n\n\n\nThis is our fourth article in a 5-part series on Building Healthy Family Finances.<\/em><\/strong><\/h4>\n\n\n\n
Where Should You Begin?<\/strong><\/h2>\n\n\n\n
Young Children<\/strong><\/h2>\n\n\n\n
Entering School<\/strong><\/h2>\n\n\n\n
The Teen Years<\/strong><\/h2>\n\n\n\n
Some topics to speak about with your teen:<\/strong><\/h2>\n\n\n\n
<\/li><\/ul>\n\n\n\nBUILDING HEALTHY FAMILY FINANCES<\/em><\/h4>\n\n\n\n