Don't Forget About The Kids!

I recently read an article that stated only three out of ten US parents talk to there kids about money and money related matters.  This is a major issue as we need to produce more financially responsible people.

Financial literacy is a must for our children in today's society. A few decades ago financial literacy for children meant opening a bank account, showing them how to write a check, balance a checkbook and saving. Today true financial literacy for children must be more robust as the financial health of our nation depends on it.  Remember our children will be the next leaders of our nation, which has been in financial turmoil for the past sixty years. If we dont do something soon there might not be a land of opportunity to lead.

The talk about finances with our children is just as important as the "sex talk" although many parents do not see it like that.  How do I suggest to handle talking to your children about money? I am glad you asked.

Well we need to start with the basics - teach them how to save, how to give back to help others, how to write a check and balance the checkbook.  But let's add topics to our discussions - there can't just be one discussion because the topic of money or finance is just too broad - like retirement (including the benefits and drawbacks of 401Ks and IRAs), credit, creating a budget, insurance, investing, entrepreneurship, taxes and home ownership.

If you need some help to understand how these discussions should go, don't hesitate to contact us.

Why Do I Need That?

Some times people view financial literacy as something they don’t need or think that they already have.  This article is not to debate either of those facts or deceptions.  It is simply meant to get each of us to think about the need for true financial literacy.  Below I have compiled a small list of life issues that require some level of financial literacy.  Remember what you don’t know can really hurt you, so let’s get educated and use that education wisely.  Here is that short list of life events:

Marriage                                 College education

Obtaining a loan                      Purchasing a car

Sickness                                 Retirement

Parenting                                Improving and evaluating your credit

Obtaining insurance                 Purchasing a home

Divorce                                  Death of a loved one

Investing

Each of these situations requires financial literacy.  Depending on how financially literate you are will determine the type of decision you make. Get educated; educated people are in position to make educated choices.  Others are simply rolling the dice and hoping something good happens! 

You can also seek the assistance of a professional in these areas as well.