Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

How To Raise Your Child's Financial IQ

Tuesday, June 18, 2013 - 7:08 AM
From Kiplingers:
First, the good news:  Americans are having an easier time making ends meet and are more satisfied with their personal finances than they were three years ago, concludes the 2012 National Financial Capability Study sponsored by the Finra Investor Education Foundation. However, 56% of those surveyed have not set aside enough to cover three months’ worth of expenses in a rainy-day fund, only 41% spend less than they make, and just 14% were able to answer correctly a series of five questions on financial literacy.

One significant finding is that younger Americans have not fared well. In the three years since the previous survey, respondents between the ages of 18 and 34 were more likely than older respondents to have experienced a drop in income. In addition...
 

Read more

The article states that when asked whether they thought financial education should be taught in schools, 89% of those surveyed said yes.
4
pearlbrownpearlbrown1,431 posts since
Nov 2, 2010
Rep Points: 6,249
1. Tuesday, June 18, 2013 - 1:12 PM
I think the best way to raise a child's financial IQ to prepare them for handling their own finances when the time comes is to be a "good" example to them.  Share with them how you handle your finances, credit cards, bills etc. and especially why you do it the way you do.  I am never so proud as when my adult DD says to me "of course I know how to handle my finances and shop, "YOU" taught me how to do it".  What a joy!  It just never dawns on a parent that they really are watching you and paying attention until you get to see them in action with their own finances and they give you the thanks for teaching them.  When they ask you why you attend all those financial seminars, don't fluff them off.  Let them know there is always more to learn when it comes to finances.
1
paoli2paoli21,369 posts since
Aug 10, 2011
Rep Points: 5,997
2. Thursday, October 10, 2013 - 2:15 AM
Great article, Pearlbrown! I totally agree with Paoli. Children usually follow their parents’ examples, so parents need to be extremely careful with how they manage their financial responsibilities. Also, when a child is young, one way to help him or her learn is to give them small responsibilities, like helping out with the chores in exchange for a few dollars or giving them a weekly allowance. This will encourage them to understand the value of money and the need to budget. Then as they grow older, teach them new financial topics as they are able to understand. Like doing a credit check, ordering a credit report, taking out loans, etc. This site: http://www.articlesbase.com/perso...126878.htm also has a lot of important points, so be sure to check it out.
1
joymalijoymali16 posts since
Apr 6, 2013
Rep Points: 23
Reply