Teach Financial Literacy

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In order to be able to teach financial literacy one needs to know the basics of financing. Financial literacy is the ability to balance ones financial life. Instead of letting the money take control of one's life, one takes control of the money. Many times humans let their lusts and wants take control of their financial life instead of realizing it is not a need. Many will say they need a big house, but in reality one does not need a big house, just a place to live; one wants a big house. So, step one would be listing needs and wants. Next, one needs to create a budget which covers all the needs. After having enough money to cover those needs, one should set aside some money for saving and/ or investing and also some for emergency. Lastly, …show more content…

Just as one learns the a,b,c's and develops words from those letters by time, one can learn the basics of money and build upon that. At the age of three, children begin to understand concepts and the first concept which should be taught is patience. At this age children want everything, but it is time to know that one cannot have everything he or she wants. Use simple things such as cookies to teach the child a lesson. One can tell the child he or she can have a cookie now, or can wait later and have more than one. This helps the child realize that waiting really pays off. At age four, the child should have an idea about counting. The parent should incorporate money with the counting. Give your child a mix of coins and have her start by counting how many there are. Each week, introduce a new coin with its name ("this is called a quarter") and have her practice picking it out of a pile. Once she's learned all of the coin names, have her separate the pile into all of the different types, and keep growing the pile each week to escalate the challenge ("Money Milestones for Kids: An Age-by- Age Guide" …show more content…

"For example, if your teen wants a $120 sweater, explain that he'd have to babysit for 12 hours at $10 per hour to afford it" ("Money Milestones for Kids: An Age-by-Age Guide" 1). Open up a checking account for the child at age fifteen and let the child know that he or she is responsible if there is anything wrong such as overspending. Let the child write checks and balance his or her own checkbook. To prepare for college and being on one's own child should start practicing how to check his or her credit report at age seventeen. Finally, at age eighteen, one should let the student or child know about loans and how they can affect ones financial life dramatically. "Student loans can be a huge burden, and the worst thing to do would be to bomb your credit score in the process. Before entering into a loan agreement, make sure you understand all of the ins and outs, and that you're choosing the best loans for your needs" ("Money Milestones for Kids: An Age-by-Age Guide"

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