As evidenced by recent financial research, many people do not understand that it is essential to teach their children money lessons.
This is unfortunate for our youth because the inability to properly handle ones money can lead to a host of difficulties in the future.
Money problems plague people from all backgrounds and all education levels.
Debt and and insufficient retirement funds are two traps many people are in.
Fortunately there is something we can do.
Teaching kid's money lessons from a very young age will help them avoid the financial traps that will plague many of their peers.
To make the best use of the time spent teaching kid's money lessons follow the tips below.
Tips to teaching kids money lessons.
1) Why: How many teachers told you "why" you're were going to learn something? Not many.
With the subject of money we have compelling "whys" and youth of all ages enjoy learning when there are strong reasons for them to do so.
When teaching money lessons be sure to let the class know "why" you are their teaching financial literacy to build the relationship with the class.
2) Real: Today's youth know whether you're being real with them or not.
When teaching financial literacy, open up, be vulnerable and share yourself with the class.
Being real builds trust and when the participants trust you they will learn more effectively.
3) Cause: Remember you are not just 'teaching financial literacy'.
Just one student picking up one piece of information can make a huge impact in their life.
The reality is a lot of the students will benefit and live a happier, healthier and more rewarding life because of you're taking the time to teach kid's money lessons.
4) Lifestyle: Money is just paper it is lifestyle that truly motivates us to learn about money.
Discover the lifestyle goals of your class and show them how money management skills will help them reach those goals.
Teaching financial literacy is much more effective when you are focused on the lifestyle advantages that your participants can enjoy if they manage their money correctly.
5) Envision: Leverage positive & negative outcomes of the future in an encouraging way.
"Because you know this - you will be able to avoid___".
Find out their dreams and encourage those and you share practical tips on how they can achieve their own personal goals.
Teaching kid's money lessons will help them to control their spending habits and to understand that money just doesn't grow on tree.
Failing to teach money lessons will probably lead them to have financial difficulties later in life.
There are some simple topics you should cover when teaching financial literacy: 1) Even if young people just learn the idea of saving money it can make an enormous difference.
What you save is more important than what you make.
This is especially true of children or given money and are left free to spend it all in a short period of time.
Basically you are teaching them that no matter how much they have, they spend it, leaving them with nothing at the end.
2) It will also help these children and adolescents as they grow up, to understand how credit works.
Although credit can be a very good thing, it can also turn into a disaster if it isn't handled properly.
These lesson will teach young people that financial success is only possible if they have control over their spending and do not seek instant gratification.
This way, they will realize debt has negative consequences.
What you buy on credit today will turn into that if you cannot pay it off when it is due.
Teaching young people practical money skills can change the course of their life.
Get involved and share you financial literacy with the youth in your community today.
They will thank you later!