Financial literacy shared responsibility
This article from Reuters does a great job of reinforcing the value of financial literacy for our children. At Cornerstone, we’ve been involved with Jump $tart – a coalition of financial institutions and advocates for financial literacy – in supporting the requirement that makes Tennessee one of the 12 states in the U.S. that now mandates that high school students have a personal finance course to graduate. But we also know that a single course, without reinforcement at home and elsewhere is just a start.
Obviously experience is one way we can learn. We can learn much from making our own mistakes. But we don’t want our children to make financial mistakes. Sharing stories of financial mishaps you may have made along the way can help your children avoid making the same mistakes.
Creating positive financial experiences and opportunities provides another valuable lesson. Encourage your child to begin savings at an early age, open a checking account for your child when he or she is a teenager to provide an introduction to managing the account, and, when the time is right, promote responsibility in managing credit when the time is right for a first credit card.