Teaching Your Kids About Personal Finance

It is never too early to teach kids about personalThe fact is that the life skills required for the 21st
finance. Many elementary schools are coachingcentury are dramatically different from the
children about money. They encourage studentscurrent generation's high school days. It's
to set up a store of their choice and allow themimperative the upcoming generation learns to
to 'do business' with one another. Fake moneyavoid the financial pitfalls that we have all recently
and creative imaginations have gone a long way.fallen into. It's imperative they understand the
These children see the results of how quickly theirrepercussions of overspending and accumulating
fake money disappears from spending too muchdebt.
or from making bad business choices. InChildren are vulnerable and pick up the spending
kindergarten, these lessons begin by teachingpatterns of their parents, albeit good or bad
needs versus wants.habits. The recession has put into play the results
The days of the old Home Economic courses areof bad financial choices and they are experiencing
coming to an end. Learning to sew, bake orfirst-hand the dangers from watching their
jigsaw woodcarvings just does not cut it anyparents lose jobs, walk away from the homes
more (pardon the pun). Instead, home economicsthey can no longer afford or by going on free or
is being converted into personal finance coursesreduced lunches in the school system.
and are being taught at many high schools aroundThe bottom line is personal finance has become
North America. The Council for Economicmore complicated. Teaching them age-appropriate
Education feels these courses are extremelylessons now could save them from the pitfalls of
important, so much so, that thoughts ofthe next inevitable recession. It may be a good
implementing them as mandatory for high schoolidea to take your children to a local bank or
graduation is being considered.financial lending institution with you the next time
These early economic lessons include managingyou go. This will provide them with a one-on-one
credit, balancing a budget and buying large itemsbanking experience so they can better inform
such as a first car or home. Many experts feelthemselves for their first loan. Teaching them
that the current recession's length and impactabout finances while they are still young is the
could easily affect a student's future financialbest way to ensure that children become
behaviour in the same manner the Greatfinancially responsible adults.
Depression affected their grandparents.