6 Reasons Children Should Know About Money
A study found that many parents are more worried or unsure about talking to their kids about finances than other facts of life. Check out these reasons why you should start talking to your kids about finances early!
- They will be targeted immediately after high school. Even after the Credit Card Accountability, Responsibility and Disclosure Act of 2009 went into effect to reduce banks’ targeting of young adults with high-interest credit, students under 21 are still receiving and accepting credit card offers.
- They’re ready earlier than you think. Most parents wait until their children are teenagers to teach them about money, however, most can begin learning financial concepts along with learning how to count.
- Early savings makes a HUGE difference. Stock market returns may vary, but over a long period of time they show an average return of 8-10%. Due to the law of compounding, the more time that you have to save and invest, the more money you will have.
- Opportunities are everywhere. You can use trips to the grocery store and other everyday experiences to teach your child financial basics.
- You’ll give them an advantage. A study showed that only 16% of adults learned financial skills in school and only 27% learned from their parents. Another study found that more than half of college students overdrew their bank accounts and did not understand how long it would take them to pay off a credit card balance. Education will give them an advantage.
- The financial world is getting more complex. Creditors are getting more creative to improve their bottom line and investment options are becoming more complex. Financial education at home will set them on the right track.
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