Your Kids and Money
Do your children want to know more about money? Probably. According to a 2008 study by Sallie Mae , 84 percent of all undergraduates polled indicated that they needed more education on money management topics. In a 2010 study sponsored by Capital One , 53 percent of the teen respondents said they want to learn more about money. These teens reported that they would rather learn about money management from their parents than any other source (including a college course!). Sadly, only 27 percent of the teens indicated that their parents discuss money topics with them regularly.
Here are a few topics that you can address with your kids about wise money management:
- Encourage your children to put together a budget, a monthly plan for how they will spend their money during their time at college. It doesn’t matter whether they have $1,000 per month to spend or $50. Starting now will help them in the future.
- Inform your children that their financial future is affected by their credit history. Money decisions made now will live on for many years and will affect not only the price of future credit and whether they can qualify for loans but will play a major role in determining their insurance rates and whether they can obtain a job.
- Help your children understand the importance of setting some money aside for a possible emergency. This will not only create some financial protection and possibly keep them away from revolving credit card use, but it will also help foster financial independence.
- Consider encouraging your child to take a personal finance course. George Fox offers a three-hour personal finance course every semester.
Ryan Halley, PhD, AFC®
Chair of Undergraduate Department of Business and Economics
Associate professor of finance GFU School of Business
Sallie Mae. (April 13, 2009). “Study finds rising number of college students using credit cards for tuition.” Retrieved from https://www1.salliemae.com/about/news_info /newsreleases/041309.htm
Capital One. (August 5, 2010). “Capital One’s Annual Back-to-School Shopping Survey Reveals Gap in Budgeting Priorities and Communication Between Teens, Parents.” Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=70667&p=irol-newsArticle&ID=1456875&highlight