One of the biggest favors you can do for your children is to teach them about money. Even though you’re either thinking of divorce or have already gone through the process, as a father you have plenty of knowledge and life experiences to share.
According to the PISA Financial Literacy assessment, a working knowledge of money and finances is definitely needed for today’s children.
In this issue, we’ll talk about what the assessment says, why it’s important and share tips on how you can help your child get a better grasp of this issue.
What does the PISA Financial Literacy assessment measure?
The assessment is taken by 15-year-olds in about 15 different countries and measures their performance in financial literacy. By the way the assessment is carried out, officials are able to obtain a fairly good overall picture of the child’s ability to take what they’ve learned both at school and at home, and apply it to real-life situations.
A recent version of the assessment found that about 1 in 4 students were unable to make simple decisions about everyday spending.
How can I teach my child about money?
Whether you have full or joint custody, the time to start teaching your child about the ins-and-outs of finances is now.
For children in kindergarten or elementary school
- Begin by letting your child become familiar with money. You can do this by letting your child see how coins and bills look and feel, and by using counting games to give a general idea of how much each is worth.
- Go ahead and introduce them to an established allowance for chores done around the home.
- When introducing them to the idea of saving, go with a clear jar rather than a traditional piggy bank so that your child can literally see how the money is accumulating.
- Give your child the opportunity to spend his or her own money. The next time you’re in a store, let him or her buy a small toy with money saved in the jar. \
For middle school kids
- This is a great time to share with your child your own previous money mistakes so that they know you’ve made mistakes as well, have learned from them and moved on.
- Go over the importance of maintaining a budget; you can do this by talking about your own monthly bills.
- Walk your child through the steps of opening his or her own bank account, making sure to emphasize what happens if there’s an overdraft.
For high school students
- This is the time to encourage your child to get a part-time job and put the paychecks in his or her own bank account.
- Teach them to be wary of relying on credit cards and the penalties of debt.
- Introduce your child to the world of investing, and show your child how stocks, bonds, and mutual funds work.
Facing Divorce in San Diego? Call The Men’s Legal Center
If you’re a man facing divorce, we urge you to get in touch with us here at the Men’s Legal Center. Our sole purpose is to make sure men have the resources and knowledge they need for the best possible outcome in family court.
You can reach us at 619-234-3838 or via email.