06 Apr Financial Education at Home
Financial Education at Home
As a personal financial coach, I work one-on-one with my clients teaching them how to create a unique budget for their future goals. Currently, only 44% of Americans have $1,000 saved for an emergency. That is the highest percentage since 2014. Recent studies are showing that more families are talking about finances. In 2021, 47% families reported talking about finances together once a week. That statistic has increased significantly from 34% of families discussing money in 2017. Since families were together during an uncertain time conversations were taking place regarding what changes needed to be made. Americans were reminded of how to appreciate what we once took for granted. Discussing financial education at home is now viewed as empowering.
Talking about finances can be a topic for family members of any age. You are never too young to learn about money, and you are never too old to develop healthy financial habits. I also encourage parents to discuss finances out in the open. Life can have unexpected events, but modeling how to overcome those emergencies is a valuable learning opportunity. Here are ways to implement financial education with children of any age.
Preschool and Elementary Financial Education
Show them the money!! In 2022, many of us are using debit or credit cards to make purchases. Online ordering is now one of main channels for purchasing. At this age, kids are still learning the concept of exchanging currency for goods or services. One of the best places to demonstrate using cash is a local farmers’ market. You can support numerous small businesses in one location. Explain why you are making your purchases. Emphasis that money is earned, and how you use that hard earned money.
Middle School Financial Education
At this stage, preteens can start to earn money outside of the home. They can also track their money with a budget. The budget is a visual tracker that shows how the user interacts with money. Are they a natural spender, giver, or saver? Once we identify how the individual interacts with money, areas that are not a strength can be addressed.
High School Financial Education
How often do you discuss saving accounts with your teenagers? Regardless of when you started an account specifically designated to pay for schooling after high school be sure to show this account to your teen. Show them how it has grown, who has contributed to it, and how they can use it. Being straight forward about what funds are available will empower that student to select a school that is within their financial means. In 2022, there are many ways to earn a degree. Selecting a school with the tuition, room and board, and fees in mind is essential to avoid crippling debt.
Young Adult Financial Education
Young adults will continue to need guidance when it comes to personal finances. Discuss these three C’s:
Are they enjoying their classes? Many of us have changed our careers after graduation. Have the young adults in your life found that they don’t enjoy post high school classes as much as they imagined? Have their professional dreams shifted? Are they finding value in the college they are currently attending? Asking questions about finding value in any purchase is important.
What can they cook? Even if they are living in a college dorm, what food can they make independently? Many of the young clients I have worked with find it’s easier to buy food from take-out restaurants. However, that is more expensive than cooking at home. During this conversation, you can also identify what kitchen items they are missing. Young adults don’t typically ask for pots and pans as gifts, but those cooking tools could save them $100s.
How are they maintaining their vehicle? Automotive bills can be large. Preventive maintenance is essential to extending the life of a vehicle. Ask your young adults when they last changed the oil in their car. How are they saving up for new tires? Is there still a need for this car? Again, emphasis the importance of questioning the value in owning a car. Also, many colleges charge for parking, and many college students don’t budget for a parking pass. I had a car in college, but I lived close enough to campus to walk. I found value in having a car because I had to drive to student teaching.
Financial Education Is Empowering
I have created a financial coaching program for middle schoolers and a program for young adults. I saw a need for one-on-one financial programing when I was a classroom teacher for five years. As a military spouse of ten years, and I see the negative results when young adults do not have strong financial habits. If you would like to learn more about working virtually with me schedule a consultation on my website today, www.salchowcoaching.com.