Personal Finance Should Be Taught In School

Personal finance isn't an easy subject. Looking at the amount of debt the average American walks around with, it's clear that money management is a bit of a struggle for many. Unfortunately, money management isn't taught in schools. Ironically, it's one of the most important lessons to learn in life. In this case, it's important to teach your children the skills and habits of personal finance from a young age. When you teach children while they are young, they're more likely to carry those habits and effortlessly manage money. Sure, it's probably not a great idea to begin teaching the differences between stocks and dividends when your child is five, concepts like saving, investing and spending are great to teach.

Spending

Spending money is a natural part of life. As a living member of society, you will spend money. There are monthly expenses to keep the lights on and a roof over your head. There are also expenses like gym memberships, fine dining and the occasional vacation. Teach children that it's not a bad thing spend money once they stay within a budget. A great way to teach the spending concept involves a fun toy they'd like. If your child receives an allowance each month, encourage them to start the month with three goals. One goal involves buying one particular item they've always wanted whether it's a toy, coloring book

The money that's kept in savings is not to be spent. It's important to make sure that whatever money goes into savings always remains there unless there is an absolute emergency. When a child gets into the habit of setting aside money without touching it at a later date, they become more comfortable with the concept of saving. Too many people use their savings as an additional checking account and dip into it whenever they feel like it. As the money grows in their savings jar, help them open an official savings account at a bank and continue to see their money