Piggy bank smarts

Smart money management begins at home. Washington University researcher Michal Grinstein-Weiss found that teaching kids about money in childhood helps them better manage their mortgage loans as adults. The study was in Social Work Research.

 

The professor offers 5 ways parents can teach their kids financial literacy:

1.  Discuss and explain basic finances around the dinner table, especially the difference between needs and wants.

2.  Teach kids how to save and set short-term goals (a new toy) and long-term goals (college). Kids will follow by example if they see you saving for something such as a family vacation.

3.  Open a savings account for your child as early as possible. Even if you bank online, visit the bank with your child to make a deposit because actions reinforce behaviors. Review monthly statements together.

4.  Teach kids budgeting and money-management skills. Help your child figure out how much money to save for how long to reach a goal amount.

5.  Get kids involved in daily activities and decisions about spending. Take them grocery shopping and have them compare prices of different brands. Count out the cash during a sale.

This website is not meant to substitute for expert medical advice or treatment. Follow your doctor’s or health care provider’s advice if it differs from what is given in this guide.

 

The American Institute for Preventive Medicine (AIPM) is not responsible for the availability or content of external sites, nor does AIPM endorse them. Also, it is the responsibility of the user to examine the copyright and licensing restrictions of external pages and to secure all necessary permission.

 

The content on this website is proprietary. You may not modify, copy, reproduce, republish, upload, post, transmit, or distribute, in any manner, the material on the website without the written permission of AIPM.