having the talk: kids, parents and money
DESCRIPTION
Tips for raising money-savvy children from a personal finance instructor.TRANSCRIPT
Having the “Talk”:Kids, Parents &
MoneyOctober 20, 2013
Hebrew Institute of RiverdaleUri L’Tzedek
Tamar Snyder, Certified Educator in Personal Finance (CEPF)
Free money?!
stats
Teens lack basic financial literacy skills:• Nearly two-thirds of today’s high school students are
financially illiterate
• The average high school senior can only answer about half of the questions on a basic financial knowledge test
• 77% of teens surveyed believe they are financially savvy, yet only 35% know how to balance a checkbook. 31% understand how credit card interest and fees work. Only 22% of teens surveyed understand how income taxes work (Charles Schwab's 2011 Teens & Money Survey)
• Financial literacy is rarely taught at school
2012 JA/Allstate Foundation “Teens and Personal Finance” survey
T.RowePrice Fourth Annual Parents, Kids & Money Survey (2012)
T.RowePrice Fourth Annual Parents, Kids & Money Survey (2012)
Key Findings:• Teens spend most of their money on “social spending” • Savings has become a lost art • The concept of “interest” is not fully understood• Most teens do not have a written budget, but know they
will need to in the future• Teens do not like asking their parents for money• While many teens have credit cards, few have seen a credit
card statement. They were shocked to see how long it would take to pay off credit card balance if they only paid the minimum balance
• They enjoyed learning about stocks and investing
5 strategies that work
tips for raising money savvy kids of all ages
1. Discuss $ values
Which money messages are YOU instilling in your children?
My Money Values:A Card Sort
Tzedaka as a tool for discussing wealth
and privilege
2. Distinguish Needs vs. Wants
3. Engage kids in $ decision making
4. Budget, Budget, Budget
Explain how much things cost
Budgeting Basics
Step 1: Calculate total income ($50)
Step 2: Set aside 10% for tzedaka ($5)
Set aside 10% for savings ($5)Set aside 10% for investing ($5)
You are left with 70% ($35) for spending
5. Encourage investment
The joys of compound interest
• Roth IRAs• Entrepreneurship
Bonus: Teach kids to be Credit Savvy
Credit vs. Debit
Allowances: Good idea or bad idea?
