How To Share Financial Literacy Lesson With Your Children

Often parents become frustrated with their childrens' irresponsibility with money. Usually this attitude stems from a lack of understanding in regards to money management. Parents must teach their children practical money management skills to help them live a financially rewarding life.

The concept of 'kids and money' raises many questions for parents that want to teach their kids about money management. Many parents don't realize that the majority of schools lack a class that gives students a practical financial education. Many more parents feel about as comfortable having the 'birds and bee talk' and they do having the 'kids and money' talk. It's no wonder recent studies show that more parents talk to their kids about sex rather than money.

This article will guide you in developing your own "Money Talk" to have with your children. Most people recognize the importance of teaching kids about money, yet so many fail to do so. A big part of the reason is because most parents don't know where to start. Follow the tips below when you have your 'kids and money talk',

1) Practical: Focus your 'kids and money talk' on the practical application of the subject rather than theory, history, definitions and other less usable information. They can pick up theory overtime; First, teach them how they can apply practical money skills to their life.

2) Story: Stories are an excellent way to teach kids about money and make the learning process fun. Sharing personal stories help you to truly connect with them and relate to them on a memorable level. If you're not comfortable sharing your own stories, third party stories are great as well.

3) Relax: You 'kids and money talk' does not need to be stressful. Realize that you are there with good intentions to give the participants information that will change their lives. Breath, have fun and understand the presentation does not have to be perfect.

4) Content: Make sure your content is relevant, up-to-date and is something that your kids can relate to. You can get quality financial education tips from organizations like the National Youth Financial Educators Council and other quality organizations. Times are changing faster than ever before so always seek out up-to-date stories and topics that your students can relate to.

5) Prepared: Before having your 'kids and money talk' be prepared and practice your presentation. Focus on money lessons which motivate, educate, and engage your children as well as inspire them to take action.

It is much more effective to begin teaching your children how to handle their money their money from the time they are young rather than waiting until they are teenagers. Teach them money is exchanged for work by having them complete various household tasks in exchange for "pay.". Of course, this doesn't have to be a large sum of money, and in fact, it shouldn't be. It should only serve as an incentive to teach them responsibility and reward.

If you do teach your children to respect money as well as themselves, then they shouldn't have a problem when they become adults. For one thing, they will know that money doesn't grow on trees, as the old adage goes. It more often than not requires effort to earn money.

In teaching kids about money, you should encourage them to have different piggy banks for different uses. For instance, one piggy bank could easily be their spending money for chewing gum and other little items. A second piggy bank, could be used for them to save money for a larger items they may want to purchase. For example, they may want an electronic game that they will have to save money on their own, in order to acquire. Another for money they want to donate. And finally, they must be encouraged to have a real savings accounts or piggy bank. This is money they are not to access.

Purpose to discuss money with your children. It is a conversation that will help them their entire life.