Growing up, my dad and I didn’t have a lot in common. I am his only daughter of his 4 children.
As I grew older and started working, he sat me down a few times a year and taught me about saving. He opened my savings accounts, made me go to bank meetings with him and checked in with me about finances.
I assumed everyone’s parents talked to them about finances. Boy, was I wrong.
After I bought my house, friends and acquaintances came out of the woodwork asking me about savings accounts, credit, and banks. I don’t even know that much, but some people know even less! So please, if you are a parent, TEACH your children about financial literacy.
I found a great piece from my new favourite website, written by the Financial Consumer Agency of Canada
“Start teaching your children about money when they are young. This way, they will learn how to:
- make good decisions about spending now
- save for the future
- practise good financial habits that will last a lifetime
- be financially responsible.”
From their site:
Here are some financial concepts you can discuss with your children as they grow up. For example, help your children learn to:
Ages 4 to 8:
- understand that people have a limited amount of money to spend
- use money to buy basic goods and services for simple transactions
- divide allowances or other money received among the financial goals of saving, spending and sharing
- understand that there are choices when it comes to money, and that money spent on one thing means that there is less money available for something else.
Ages 9 to 14:
- recognize the difference between needs and wants
- understand the importance of saving a portion (for example, 10 percent) of all money they receive and the value of an emergency fund
- create a savings plan for short-term and long-term financial goals
- identify regular financial commitments families have and know that families use household income to meet those commitments
- create a simple budget for an activity or event.
Ages 15 to 18:
- understand the pros and cons of different payment options such as cash, debit cards and credit cards
- understand different kinds of basic investments (GICs, stocks, bonds and mutual funds)
- understand the time-value of money (for example, past, present and future worth of money) and opportunity costs
- understand the concept of “living within your means” and why it is important.