With the students making their way home for the Summer, it’s a good idea to get started on teaching your child about finances. With summer jobs and fun packed activities to squeeze in all summer long it’s never a bad idea to teach the kids where the money is going and how they can utilize it better at any age.
But according to Leigh Singleton - the Director of Financial Education at Monifi, leading banking platform, - countless parents make the following financial education blunders:
>> MISTAKE #1: STARTING TOO LATE
Don’t wait until your child is in high school to discuss finances - you can start teaching your children financial literacy from preschool age by utilizing imaginative play such as playing store or ice cream shop.
>> MISTAKE #2: NOT BEING TRANSPARENT
Because children often believe adults can purchase whatever they like, parents should clearly communicate when they opt out of purchases in order to save - this will instill saving habits from an early age.
>>MISTAKE #3: GETTING DEFENSIVE
Parents may become defensive when asked “How much money do you make?”, but this can cause your child to create a negative outlook on money talk.
>> MISTAKE #4: SAYING “YES” TOO SOON
Many parents look to give their children the world, but saying “yes” too soon may create a lack of foundation in understanding the importance of earning/saving.
>> MISTAKE #5: FOCUSING ON SAVINGS OVER INVESTING
With the current wave of cryptocurrencies and investing, it is important to teach your child the basis of saving prior to promoting investing in either companies, products, or services. This will allow your child to understand the process of finances – you can’t invest money you don’t have.
To solve these types of mistakes, I can also suggest checking out Monifi – #1 digital bank for saving goals and education.