” Back to School…Money Lessons Every Child (and Adult) Should Learn This September”

It’s back to school season–and that means the perfect opportunity for children to learn a little more about money management and how to ensure that they’re meeting their long-term financial goals. Not only that, it’s a great time for adults to brush up on some of those key money-related topics that they may be a little behind on. This September, have a look at some of these practical, real-life lessons that can help kids and adults alike succeed financially.

Lesson #1: The Value of Money

Basic “money and me” lessons may seem like an option for younger children, but the reality is, understanding the value of money is critical for kids of all ages. Give your children a comprehensive look at what their money is really worth, including spending power in today’s society. Discuss the cost of key expenses, including new clothes for the school year and items they may need for their classes, and let kids make key budget decisions within preset guidelines.

This isn’t just an important lesson for children! Take regular time to consider the value of the funds you have on hand–including their current spending power versus what you could earn through quality investments.

Lesson #2: Credit Basics

For many children, using a credit card or debit card may not feel like using “real” money–and they may not understand the cost of using a credit card. As you talk to your children about money, make sure they understand how to use credit effectively: the importance of having a credit score, the cost of borrowing money long-term, and how to build solid credit without falling into debt. Further, discuss the long-term cost of debt and how it can influence their financial futures.

As an adult, don’t forget about the importance of those credit basics. Have a close look at how your spending compares to your income–and how much using your credit card may ultimately increase the cost of those expenses, especially if it takes you a long time to pay them off.

Lesson #3: Budgeting

Learning how to create a budget is a critical part of managing finances over time. For many children and adults alike, a budget feels like an impossible document that locks you into specific spending requirements. In reality, however, your budget can bring considerable financial freedom! A solid budget can help you understand how much money you have coming in, what your actual expenses look like, and even how you can manage your finances to include big expenses. Learning how to set and stick to a budget is a valuable life skill no matter your age.

As part of an effective budget, make sure that you have a little money set aside for fun and discretionary spending. If your budget is too rigid, you won’t stick to it–and that can leave you in a bigger financial mess than before.

Lesson #4: Saving and Investing

Teaching age-appropriate saving and investment lessons can help children thrive as they grow up. In their early days, saving may look like setting aside a specific portion of their allowance or gifts from birthdays and holidays. As they get older, they may learn how to invest those funds so that they can grow.

For many adults, investing is a daunting prospect. However, there are several simple strategies that can make investing easier than anticipated, including working with an experience financial advisor who can provide advice and manage those investments in a way that fits your current financial status, your goals, and your long-term plans.

Learn More About Money Matters

There are a lot of financial lessons to be learned–and teaching your children about money as early as possible is critical to their eventual financial success. Don’t let those money lessons pass you by! Reach out for financial advice that can help you better manage your budget and ultimately accomplish your goals. If you are hungry for even more tips, feel free to visit our ‘just one financial thing’ series here.