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How to teach children about finances

Give your kids an allowance and help them set goals for how to save/spend it.

As parents, we are the first ones to teach anything about money to our children.  A new study, however, suggests that parents are talking to boys and girls about personal finance in different ways, and it might be responsible for shaping habits and expectations that can last a lifetime.

According to a survey of 1,000 parents conducted by Giftcards.com, respondents were more likely to teach their daughters fiscal restraint, while their sons were more likely to be taught about building wealth. For example, 61% of boys received a lesson from their parents on credit scores by the time they reached high school, compared with 46% of girls. Boys were also 9% more likely to be taught how to pay taxes, 5% more likely to be taught about bank accounts, 3% more likely to be taught about credit cards, and 2% more likely to receive an education on investing.

Girls, on the other hand, were roughly 13% more likely to be taught how to track their spending, 5% more likely to be taught about budgeting, and 3% more likely to receive a lesson on investing by the time they reached the same age.

The discrepancy, however, wasn’t only found in the lessons taught to each gender. The study also found that girls receive less money from their parents, with boys in high school and elementary school getting roughly $20 more on Christmas, $3 more for completing chores, and $1 more for allowance.” Girls are paid less, and are taught that they need to save and budget, while boys are paid more and taught about investing and credit scores,” says Bri Godwin, a media relations associate for Giftcards.com.

Here are some tips that I have come up with to help you teach your kids about money:

1.    Have a family meeting. Talk with your kids together. Share ideas. Give information. 

2.    Set up a family 401k. This teaches your kids the terms as well as to set a goal as family and how to save and invest. 

3.    Allowance. Give your kids an allowance and help them set goals for how to save/spend it. 

4.    Utilize tools and resources. There are organizations such as BestPrep, have your kids meet with your wealth adviser, have your kids take classes on money, etc. 

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