If you remember back to a time when you first learned about money, what memory would come to mind? Watching your father or mother balance a checkbook? Or, hold on to receipts after shopping? When did you learn about credit, or better yet, a credit store?
Back in the day, it was considered taboo to talk about finances with children. Parents never talked about money until they were out of earshot and things like credit were a mystery, till probably college. By then, however, it was too late. The learning of some people’s finances was taught by the school of hardest Knox – through costly mistakes that took years to repair.
Despite what most people think, learning money starts at home! It’s not necessary to tell your child how much income you make per year, but, including them in small things like paying bills and balancing a checkbook can teach them several important lessons that will become invaluable later on in life.
Depending on your child’s age and what level of comprehension they are at, think about how to explain credit scores and what good financial habits can do to protect it. Think of it as educational life lessons and consider the repercussions if left untold.
Not sure where to start? Here are some basic financial lessons you can teach your child at any age;
- The importance of savings and setting goals for objects they wish to purchase.
- The importance of credit and what a credit score is – how your payments and financial history can affect it in both positive and negative ways.
- The explanation of what a credit card is versus an ATM card – debit versus credit.
- That the bank is a place that holds money – it doesn’t distribute cash on a whim (think money tree analogy ;).
- Mistakes happen, but, it’s never too late to begin anew!
Find yourself maybe needing a financial lesson yourself? Or, looking for some assistance with financials for your home or business? We are simply a phone call away! Contact our offices at 843.706.9644 and schedule a free consultation. We’ll go through it all together and have your peace of mind waiting on the other end.