April is Financial Capability Month, but what does that mean? In a proclamation, President Obama said that April is a month that can help make Americans more aware of the resources that are available to them. It is the perfect time to start educating young people about what financial literacy is and how becoming financially literate can benefit them for the rest of their lives.
Financial literacy starts at home with parents simply talking with their kids and we have compiled our very favorite Walter the Vault tips to help those lessons and conversations flow easier.
- Parents should start talking to their children about money as early as possible.
- Start with coin identification and talk about the value of each coin.
- Discuss the buying process, which is the relationship between money and merchandise. This can be easily done in a supermarket when you are on the line waiting to check out.
- Discuss the relationship between money and work. Remind them that money doesn’t magically appear. It has to be earned. This can be done by creating chores to establish the relationship between work and money.
- As kids get older, parents should give their children an allowance to establish the relationship between unlimited wants versus limited resources.
- Get children into the habit of saving. This can start with a piggy bank and progress to a bank account as soon as possible. Make it fun for them by letting them decorate their own piggy bank!
- Have children set short, medium and long-term saving and spending goals. These should be written down. Once the goals are set, help the child map out the steps needed to reach the goals. This can be a good thing to do when you talk about an allowance.
- Discuss a social issue that is important to the child and together, research charities that are related to this issue. Have the child donate, even a small amount, to the cause.
We want to know what tips you use and how they work or if you have any tips you think we missed. Contact us on our Facebook page!