There’s no doubt that parents are their kids’ first teachers. Not just for Reading and Writing, but also for money management. In this presentation, I have shared 5 easy tips for raising financially savvy kids. For more tips: https://vimeo.com/maureeneoconnell
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5 Ways To Raise A Smart-Money Kid By Maureen O'Connell
1.
2. Introduction
There’s no doubt that parents are their kids’ first
teachers.
Not just for Reading and Writing, but also for money
management.
In this presentation, I have shared 5 easy tips for raising
financial savvy kids.
3. 1) Start Early
Reading aloud to children lays the ground to literacy.
Similarly exposing them to money concepts from an
early age sets the foundation for financial literacy.
For example:- If you have a preschooler, a good practice
would be allowing them to hand-over cash to the cashier
while making purchases.
4. 2) Start Saving
Let the child have his/her own piggybank.
A piggybank can be a great way to for children to
understand how money accumulates over time.
Whether they earn an allowance or not, they will begin
to see the progress and learn the value of saving.
5. 3) Distinguish between Wants and Needs
Every child must understand the difference between
wanting something and needing something.
They seek instant gratification but delaying it, is one of
the best gift parents can give.
A good exercise would be to make them guess the cost
of things, so that they understand the value of things.
6. Exercises for them
Take children for shopping with a fixed budget and see
how they manage it in the grocery store.
Have older children, plan a family meal within a given
budget.
They will understand budgeting and organizing better.
7. 4) Let them make mistakes
Children will make mistakes, financially also. It is all a
part of the learning process.
If a child has misspent all his/her savings, try making
them “earn” the difference by having them do certain
chores.
8. 4) Lead by example
Financial literacy is contagious.
Children look up to their parents in terms of habits.
Similarly, they are bound to form positive financial
habits faster when they see their parents practicing
those same habits.
Therefore, as parents it is necessary, that you yourself
practice good financial habits.
9. To Conclude…
Simple, practical, and age-appropriate money
lessons like these can have a big impact on
children’s financial literacy.
It is on the parents to instill good financial habits and
practices in their children.
10. Maureen O'Connell
Maureen O’Connell is Executive VP, CFO and CAO
for Scholastic Corporation (NASDAQ: SCHL).
Finance and Accounting are her forte.
She also excels at Administrative Function such as
Strategic Planning & Business Development, Global
Operations & IT and Human Resources.