Welcome back to Chatter news. I'm
and
now to stretching your dollar according to a study from finance buzz,
only 43% of parents think schools adequately teach financial literacy.
So how can parents make sure their kids are learning the true value of a dollar?
Joining us now to discuss this Catherine Tuggle,
Chief Content Officer and founding partner of her money.
Catherine. Welcome. Thanks for having me. We're pleased to have you.
So what are some of the best ways
parents can teach their kids about financial literacy?
Right.
Well,
I think first it's just acknowledging that it's on you because we know that
only 19 states right now mandate personal
financial education for kids before they graduate,
which is crazy.
Everybody needs to know how to write a checkbook.
Like how not to be taken advantage of in a scam, how to manage credit card debt.
There's so many basics that they're just not gonna get unless you teach it.
So the first rule of thumb is really to start early,
there's no such thing as too early.
You can start by really just at a Rory store, you know,
looking at the cost of cereal that comparing the cost of the generic brand to the
name brand and talking about your budget and
what you can afford and education on savings.
You know, if they get birthday money, if they get holiday money, say, you know,
we're gonna put 10% of this in savings,
we're gonna give 10% of this to charity and
just start those conversations as early as you can,
you mentioned starting this early.
How early are we talking about? And really the benefits of starting early?
Yeah, I mean, I think we,
we typically hear experts say around five years old is a really good guide.
You know, you can start counting money and things like that very,
very early as soon as your kid can count to three.
But in terms of like what money is and the fact that you're going
to a job to earn money and that the family has a budget,
those things can start around 56 years old.
Do you think giving a child, you know,
pocket money or an allowance of some sort is an effective learning experience?
It can be if there are less tied to it, right?
If you're saying we're gonna save this amount and we're
going to spend this amount and this amount you're going
to put aside for that vacation that you're taking or
that build a bear that you've been dying to create.
We're gonna put 10% of that towards this.
So, you know, allowance can't just be money handed over.
It has to be money with intention and lessons behind it.
So watch us walk us through some of the
practices that can help teach kids about money.
Because I think back to as a kid, my dad,
we started with a savings account and that was sort of my way
to sort of learn how to build. But what other sort of things can somebody do?
I mean, to your point, a savings account is great.
A checking account is a great place to start.
Particularly once your kid is old enough to be, have eliminate,
stand or to be mowing lawns or to be babysitting as soon as they have that money,
they need to be educated on safe places to put
that money and what to do with that money.
So, you know,
banking should just be part of the conversation and
saving money should just be part of the conversation.
And if you as a parent and act like it's a foregone conclusion that you're going
to save that you're gonna give to charity and that you have the bank account,
your child will operate that way too because they are very,
they are absorbent little sponges like they are going to do what you say.
And if money is a source of stress for you,
money is going to be a source of stress for them.
If money is a source of empowerment for you,
money is going to be a source of empowerment for them.
We have less than a minute but I have to ask you about older kids, teenagers.
How do you teach them about credit?
It's a good question.
I mean,
the most important thing is that you teach them before they hit college because
we know that the credit card companies on college campuses can be like,
downright predatory, like,
sign up for a free water bottle or a free beach towel right in your life away.
Um I, I think really just educating them on
the best way to
have a bright financial future is the way to go.
Like we, we typically say future, you prioritize future you now. So you know
what is future you gonna want?
They're gonna want to have money saved, they're not gonna wanna be in debt.
So what can we do today to prepare to have a successful future
Katherine,
chief content officer and founding partner of her money?
Thank you so much for joining us,
Katherine and more chatter news coming up next guys.