Teach your children well

As a parent, you take your role as primary educators of your children seriously. You learned brush their teeth, do their homework and go to bed on time but with less success on a given day. But what you have learned about money?

You might think that tweens and teens are too young to learn about dollars and cents, that a lot of time for them to learn financial responsibility. But the following statistics on the Washington State Department of Financial Institutions website might change their minds:

• People in the age 18 to 24 spend nearly 30% of their monthly income just on debt repayment. (10% of net income is a recommended amount for a debt).
• US children, adolescents and young adults (ages 8-21) earned about $ 211 billion in 03 and rose to a rate of about $ 172 billion per year.
• average of 21 years in the United States will spend more than $ 2.2 million during his life.

they get it, they spend it and as far too many cases, exceed the amount they spend the amount they have. According to 05 figures Jump $ tart Coalition, 45% of students are in credit card debt, with an average of over $ 3,000. The Richmond program abuse of credit Resistant Education (CARE) noted that the number of 18 to 24 declaring bankruptcy has increased 96% in 10 years.

Where this future generation of debt ridden learn better money management and financial planning habits? Perhaps in school, although all 38 states have standards or guidelines of personal finances, only seven require students to take a personal finance course to graduate, according to the National Council of information on economic education.

The bullet money is back in the court of the parent, but help is available from your insurance advisor, financial planner and organizations such as LIFE. Here are some suggestions to start talking money with your children.

Share your sessions. make them part of your planning session with your professional financial adviser or insurance. A discussion of the different types of insurance and their role is critical, especially since statistics showed that although 70% of American adults say they personally need more life insurance, only 36% have a policy that they bought themselves, according to the Next Generation financial literacy Program of the lIFE LIMRA and life insurance Barometer 2011 study and person-level LIMRA Trends in life insurance of US study Property 2011.

Make it a play. (with materials available on DVD and online), were originally designed as a tool for educators to use in the classroom to cover the basics of risk management and financial planning, as well as life insurance, health and disability. But parents and children can learn many NextGen3, taking quizzes, playing the interactive game of Risk or get a history lesson on the concept of "pooling of risks."

Teach by example. to really make an impact, we must "walk the talk." engage your child in budget planning and investment discussions, or using them to participate in research on the best options to save money for family vacations or college funds. When they see the long-term ramifications of all the choices, they will be better able to make informed decisions when they are in charge of piggybank.

It is never too early to educate your children about the realities of life. And like most parenting experiences, you can end up learning a little more yourself!

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