You moms out there — do you think your child will be prepared for a job when the time comes? A surprising 49 percent of moms feel kids are unprepared for a job, according to a new survey.
The poll, conducted by McGraw-Hill Federal Credit Union questioned 300 mothers with children under the age of 18 and found that 44 percent of mothers also believe their children will not be able to finance college. And 33 percent believe their children are “not at all prepared” to save money or live on their own.
“The benefits of teaching your children about money management can lead to a lifetime of good financial decisions,” McGraw-Hill Federal Credit Union president and CEO Shawn Gilfedder, told Mother Nature Network. “Teaching by example is a good place to start.”
First, be open to talking to your kids about money and then teach them how to budget. Three steps to teach your child to budget:
1) Take them shopping. Let them help you buy the groceries, for example. “Ask your child to help you find and read the unit price numbers at the grocery store in order to find the best bargains. You can also give them a budget and ask them to come up with a grocery shopping list. Have them look in the kitchen cabinets and refrigerator to figure out what the family will need for the coming week, then review the list together with them before going to the grocery store,” suggests WikiHow.
2) Give them an allowance. Have them save a percentage of the allowance each week and then have them use the remainder to buy things they want, instead of you buying.
3) Teach them about banking. Take them to the bank to open an account to save part of their weekly allowance. You can have them save for larger items they want to buy in the future. Have them keep track of how much money they will need to buy the desired item and figure out how long they will need to save to reach that amount.
What are you doing to teach your kids about money management?