The Only Countries That Teach Personal Finance (And What You Should Teach Kids Yourself)

Recently, Georgia becomes the thirteenth state in the country To commission a personal finance education for high school the students. to me The next generation of personal financeGeorgia joins Alabama, Florida, Iowa, Mississippi, Missouri, Nebraska, North Carolina, Rhode Island, Ohio, Tennessee, Utah and Virginia in asking teens to take At least one semester of personal finance prior to this can you graduate.

while this The growing trend of states requiring a basic financial literacy education in high school is encouraging, and this still means that “only 35% of students in the United States have access to a financial literacy class,” according to CNBC. a The majority of children and adolescents are still Need to get this education somewhere else.

Since money management is not traditionally taught in schools, the responsibility lies with parents. In addition to what we wrote earlier What do you teach your son about money at every age?Here are some basic financial skills every teen should know when they graduate from high school.

basic bbudget

Every teenager should be taught how to set a realistic budget. Teach them (through your own statements) to collect securities such as W-2s, payment slips, utility bills, credit card statements, receipts, and all other securities relevant to their (future) income and expenses. distance Make a list of your monthly expensesThey should know how to break it down into fixed and variable expenses. Teach them to compare their gross income to expenses, so they can create a savings plan for their monthly remaining income or decide where to cut expenses so they don’t live beyond their means.

smart shopping

Children and teens should be taught how to compare stores, considering price, size, and quantity on things like groceries, toiletries, toys, sports equipment, and other occasional items—whether in the aisles of your local Stop ‘n store or on Amazon. Take them grocery shopping and list your evaluation process and find the best value. Or give them a set amount of money and a shopping list and challenge them to buy your family’s weekly necessities with that limited money.

DIY money-saving life skills

Being able to do basic household chores can save you a lot of money. Parents should actively teach children how to wash clothes, plan their weekly meals, fix and clean clothes, cook, clean, clear a toilet or sewer blockage, and perform basic vehicle maintenance, such as changing Oil or air filter change. They will be in a position to save money Otherwise they would have been spending on tailors, maid services, fetching abroad, and mechanics.

How to Split the Bill (and Calculate Gratuities)

Everyone should know how to properly split a restaurant bill and tip a waiter. Teach your kids to add a little more tax and tip than usual to their amount (to cover their party members who will inevitably make the wrong math). Teach them, too, that philosophies about group payment differ. Some believe that all group dining purchases should be divided equally by the number of diners, no matter who eat whatWhile Others will calculate precisely what they ate and drank. Young You must be prepared for both scenariosFind out how to calculate a file 15-20% bonus.

The importance of good credit

While the credit card industry makes our kids believe that the ability to credit and spend is free, plentiful and always availableOur job is to let them know it’s not. Help them understand The importance of having a smaller number credit cards and push them full bills and On time, you understand How much will they pay interest for carrying balances from month to month? (This is where you explain how easy it is to fall into debt; and how long it can take to pay it off.) Benefits of having a high credit score–Lower mortgage interest rates, more likely home rentals, and better car insurance rates.

How to set short and long term savings goals

Help your child or teen set short and long-term savings goals. This can start at a young age, by asking your child to bring out a toy he wants, and challenging him to save a few dollars in allowance every week or month to buy it on his own. Praise progress and make it visible, says financial advisor Rachel Stewart my parents, “either by keeping the money in a clear container or showing your child’s bank statement.” Being able to see their money pile up is a huge motivator.

As they get older, work with your teen to set a long-term savings goal, like a car for example, and help him figure out how to adjust his budget, savings, and income to reach that goal.

investment

Investing can be intimidating, even for people of adulthood. Expose your child to the power of investing and the time value of money, either through a basic investment classan application like green light Or by letting them invest a small amount of money in a trust account.