Funding Your Future: Teaching your kids financial literacy

Rachel Langlois of Cyprus Credit Union wants parents to know that teaching your kids proper financial health is easy. A recent survey done by Junior Achievement found 84% of teens look to their parents on how to manage their money.  However, most parents say they feel uneasy talking to their children about financial matters. Here are a few of her tips to help you get started. For more advice from the staff at Cyprus Credit Union or to open a savings account for your teen visit CyprusCU.com.

 

Rember children are just adults in training. Your job is to help them survive on their own.

 

1)      Teach them to Budget

  1. 70% don’t understand budgeting
  2. 40% on clothes & food
  3. When teens outspend earnings, parents take on this debt.

 

2)    Set Saving Goals – less than 40% save

  1. Long-Term– school, car, travel, etc
  2. Pay a portion of perks, such as phones.

Help them practice delayed gratification.

  1. Offer to match savings
  2. Have them play around with online calculators. Click Here to find some of Cyprus Credit Unions Calculators.

 

3)      Encourage Entrepreneurship

  1. Discuss how they can earn money
  2. Example of EmiJay hair accessories
  3. 14-year-olds can work in Utah
  4. Instead of an allowance, pay “business” costs.

CyprusCU.com