With the new school year either here or just around the corner, it’s time to fill your shopping carts with No. 2 pencils, protractors and all the goodies the kids will lose by the second day of school. If only you could teach them not to do that. For those off to college, it can be even more exciting. But, instead of needing you to replace their pens on day two, your college-aged child will probably be calling to ask for money by then.
It’s such a ritual that, at this point, many of us don’t really question it. But how much do our kids actually know about money? You might want to only include the lessons you taught them, because their school probably didn’t teach them much at all.
Common core and other national guidelines don’t include requirements for teaching budgeting skills, how to balance a checkbook, or even explanations of basic concepts such as credit, loans or mortgages. Basically, the last time your children learned about money at school, it probably involved finding out how many apples and oranges they could buy in a math word problem.
We talked to some credit union members about the lessons they want to pass on to their kids. Below you’ll find some of our favorite lessons to teach your kids.
Our Favorite Lessons
Pay yourself first. No one else is going to make you a financial priority, so don’t make them your financial priority.
If you want to know if you can afford something, check your budget. If you have to check your checking account, you can’t afford it.
Reconcile your accounts every month, you’ll always have a pretty good idea how much is actually in each account. Plan ahead. Make a budget. Execute the plan by sticking to that budget.
Take risks while you’re young. You can afford to be more aggressive with your retirement and college funds while you have time to make it back up. Don’t be afraid to push those funds a little bit. That said, not saving for retirement is not a risk. It’s just a bad idea.
Make sure the Joneses keep up with you. It’s easy to get lost trying to compete with your peers. It’s also almost as easy to ignore those consumer pressures entirely. But what about the third option? Instead of ignoring their financial situation, check in every now and then to see if they need help. Our communities are better when we care about each other.
Whether your kids are in diapers or their kids are wearing them, it’s never too early or too late to teach financial literacy. It’s also never too late – or early – to start saving for college. Instill the right lessons and feel free to check back in with St. Paul Federal Credit Union – we always have plenty of resources for young people to learn the lessons they aren’t getting in math class.