When I came across the following info I thought to myself, hmm, maybe I really don’t need a gift from my kids this year. The guilt set in and I asked myself, are my husband and I really doing a good job teaching our kids about money to be able to disagree with this survey? Check this out.
Hey kids—still hunting for a Mother’s Day gift for mom? Maybe you should save your money. This year, skip the flowers and jewelry. According to a new study out in time for Mother’s Day, mom may not want kids to spend hard-earned cash on her, at least not extravagantly. She wants her children to learn to manage and save money.
According to the survey, only one-third of moms believe their kids 18 and under are well prepared for their future, financially. Jobs, college, savings—moms are worried about it all.
· 49% of moms believe their children are unprepared to get a job
· 44% believe their children will not be able to finance college
· One third believe their children are “not at all prepared” to save $ or live on their own
Clearly, moms are worried about the financial future of their children. What’s the reason, though? Today’s tough economic climate is part of it, but, beyond that—moms surveyed expressed that their children just don’t know enough about financial issues to fully prepare themselves into adulthood.
Credit union expert and leader, Shawn Gilfedder, President / CEO of McGraw-Hill Federal Credit Union, believes this speaks to the need for more early stage financial literacy programs in the US today. Gilfedder has a mission to enhance “financial wellness” and believes that financial education begins at home.
“The benefits of teaching your children about money management can lead to a lifetime of good financial decisions,” says Gilfedder. “Teaching by example is a good place to start.” Gilfedder suggests that parents involve kids in household budgeting, grocery shopping and even reading bills or statements as a way to get them interested in personal finance.
Credit unions like McGraw-Hill help consumers achieve financial wellness through monthly financial literacy seminars, employee financial education and high value, low cost products and services. For example, McGraw-Hill offers its members the S3 checking account that features no monthly fees and no minimum balance requirements to earn interest, as well as a new lifecycle financial advisory service.
The credit union has also put together some basic tips to help prepare kids for a sound financial future:
- Allowance for kids of all ages. It is not usually a lot of money, but it allows children to learn more about what things truly cost in reality. Nothing makes children appreciate money more than earning their own. It does not take them long to realize that money is much easier to spend than it is to earn.
- Talk about money. Kids are interested in this topic! Share basic lessons on budgeting; banking and saving with “real world” examples such as when you make a major purchase, use a credit card,
orpay bills or take money out of an ATM.
- Teach them to budget. When they want to buy something special, give them the tools to earn the money, save the money and make compromises along the way so they have the money when they want to spend it.
With continuing uncertainty in the job market and the economy, families need to find ways to strengthen their money management skills and partner with financial institutions offering financial resources and education to help them achieve their financial goals.