(NC) As much as we love our children, many of us are looking forward to becoming empty-nesters one day. But as high student loans and unaffordable housing stifle many young people, it’s important to give your kids the right tools and education for the current climate so they don’t mature to be an “adult child.”
Parents today are trying to teach their children about good financial habits, with 61 per cent of Canadian parents saying they have taught their children about money, according to a recent survey by the Chartered Professional Accountants of Canada.
To help give your kids a strong foundation, check out these helpful tips.
Choose age-appropriate lessons. You don’t have to wait until they’re teenagers to teach them money life lessons. As early as age three, you can teach your kids they may have to wait to buy something they want. For example, when you’re at the grocery store you can talk about deciding between this cookie or that cracker, but not both, or explaining to them they can’t have that chocolate bar at the checkout lane.
Look for opportunities. With the right mindset, you’ll see many chances to teach your kids about money and finances in your everyday lives. Do they want an expensive toy? Teach them about long-term savings goals and encourage them to set aside some allowance money to make the bigger purchase in a few months. Is your 14-year-old excited about post-secondary already? You can also talk about setting aside money for university or college or perhaps a trip once they finish their post-secondary education.
Stick with it. Parents who teach their kids early find that it pays off. According to the same survey, 44 per cent of parents graded their success in teaching their children about money at eight out of 10 or higher. And 48 per cent of participants with adult children gave their child an eight or higher in how successful they are at managing their money.
Find more information and resources to get on a path of long-term financial health by reading CPA Canada’s Parent’s Guide to Money-Smart Living.
