1. How to Write a Check It is important for all young people to be familiar with the different parts of a check as well as to know how to write the number words from dictation.
2. How to Balance a Checkbook Being able to keep track of expenditures is a vital part of managing money. It is important that children learn to post/record their deposits and withdrawals in order to maintain a running balance of their checking account. This will also aid in formulating a subsequent budget.
3. How to Live on a Budget One of the best ways to teach your children and teenagers how to live on a budget is to model it yourself. By watching you, your kids will develop a sense of how to do it themselves. Discussing how and when you pay your bills, pay your taxes and set up a family budget will become one of the most valuable lessons you can give to your children.
4. How to Save Learning how to save our money is one of the most basic financial skills everyone needs to internalize. As soon as children are old enough to understand they are receiving money, whether it comes from gifts, allowances, chores, jobs, etc. they also need to understand that the earlier they begin saving their money, the better they will be in the future.
5. How to Spend Money Money is required to be spent, as well as to be saved. Knowing financially appropriate ways to spend money is the key to smart spending. Young people need to understand the differences between needs and wants as well as know how to deal with impulse buying and instant gratification attacks.
6. How to Earn Money Finding ways to earn money on your own helps to foster that entrepreneurial initiative. Knowing you can always earn some money when it is needed encourages a sense of independence. Children can begin to experience earning money at young ages with their first lemonade stand and continue it through their older years by mowing lawns, shoveling snow or any other creative venture their parents approve of.
7. How to Avoid Credit Card Debt Credit card debt has become a major problem with many individuals, both young and old. Understanding responsible ways of using a credit card is an absolute must for everyone. See our Web site or read our book, What Every Preteen, Teenager and Young Adult Needs to Know to Avoid Credit Card Debt.
8. How to invest Your Money Children can become familiar with the idea of investment at much earlier ages than many of us seem to believe. It is important that young people begin to understand that their money has the ability to grow when it is invested. Becoming knowledgeable in the skills of investments can help them to be better prepared to make informed decisions later on in their lives.
9. How to Know When and What Taxes Must Be Paid Like it or not, taxes are a part of our lives. Young people need to be aware that we must pay government taxes for certain services the government will provide for us. They also must realize that they will have to pay tax every time they purchase certain items. When our children save their money to buy the newest technological gadget, they must also realize they must save for the tax that will be charged as well.
10. How to Know How to Show Concern and Caring for Others in the Community in Which You Live Developing an awareness of others outside your self is the beginning of a caring and philanthropic awakening. Being grateful for all the gifts you have can ignite empathy for others less fortunate than yourself. Reaching out to others helps children to embrace that feeling of giving something back. It is an understanding that can permeate into their habits throughout their lives.
For More Information on Helping Your Children Be Better Prepared for Their Own Future Finances, See Our Book, Teaching Children Money Matters: A Resource Guide For Parents, Grandparents, Teachers and Students.