The only state that teaches personal finance (and what you have to teach your children yourself)

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recently, Georgia has become the 13th state in the country Mandatory high school personal financial education student.according to Next Generation Personal FinanceGeorgia joins Alabama, Florida, Iowa, Missouri, Missouri, Nebraska, North Carolina, Road Island, Ohio, Tennessee, Utah, Virginia to become teenagers Personal finance for at least one semester before them You can graduate..

During this time The increasing trend of states requiring to teach basic financial literacy in high school is encouraged, which still means that “only 35% of US students have access to financial literacy classes.” according to CNBC.. A The majority of children and adolescents are still You need to get this education elsewhere.

Money management is traditionally not taught at school, so the responsibility lies with the parent.In addition to what I wrote before What to teach your child about money at all agesHere are some basic financial skills that every teenager should know by the time they graduate from high school.

Basic bto decide

All teenagers should be taught how to set a realistic budget. Collect (in your statement) W-2 and pay slips, utility bills, credit card statements, receipts, and all other financial statements related to (future) income and expenses. Teach.rear Make a monthly cost list, They need to know how to break them down into fixed and variable costs. Tell them to compare their total income to the cost. That way, they can decide whether to plan a savings on their remaining monthly income or where to cut costs so they don’t live beyond their means.

Smart shopping

Kids and teenagers will be taught how to compare shopping and take into account the price, quantity and quantity of groceries, personal hygiene products, toys, sporting goods and other accessories at the local Stop’n Shop. Please tell me if it is in the aisle. , Or on Amazon. Take them to grocery shopping and talk about your own process of assessing and finding the best value. Or give them a fixed amount and a shopping list and challenge them to buy your family’s weekly essentials with those limited funds.

DIY life skills to save money

Being able to do basic household chores can save you a lot of penny. Parents actively teach their children how to do laundry, plan weekly meals, repair clothes, trim, cook, clean, unclog toilets and drains, change cars, etc. Basic maintenance is required. Oil or air filter change.They will be in a position to save cash Otherwise, they would have spent on tailors, maid services, takeaways, and machinists.

How to split an invoice (and how to calculate hints)

Everyone needs to know how to split a restaurant invoice and tip properly to the weight staff. Tell your child to add taxes and a little more tip than usual to their amount (inevitably to cover the members of their party who make math mistakes). Also tell them that the philosophy of group payments is different. Some people think that all group dining purchases should be evenly divided by the number of diners, regardless of who they are. What did you eatin the meantime Others specifically calculate what they eat and drink.Kids You need to be prepared for both scenariosAnd know how to calculate quickly 15-20% tip.

The importance of good credit

Although the credit card industry makes our children believe that the power of credit and spending is free, abundant and permanently available.It is our job to teach them that this is not the case.Help them figure out The importance of being less With credit card Their payment Completely with an invoice On time and understand The amount they pay interest to carry the balance on a monthly basis. (This is a place to explain how easy it is to get into debt and how long it will take to pay it off.) Benefits of a high credit score— —Low interest rates on mortgages, high likelihood of approval for mortgages, and higher interest rates on car insurance.

How to set short-term and long-term savings goals

Help your child or teenager set both short-term and long-term savings goals. This can be started at a young age by asking the child to come up with the toys he wants and challenging the child to save a few dollars from the allowance to buy for himself weekly or monthly.As financial adviser Rachel Stewart said, admire progress and keep it visual Fatherly“By keeping the money in a transparent container or showing the child a bank statement.” It is a great motivation to be able to see their money accumulating.

As they grow older, they work with your teens to establish long-term savings goals, such as cars, and how to fine-tune their budgets, savings, and income to reach those goals. Please help me understand.

investment

Investing can be frightening, even for those entering adulthood.Expose your child to the power of investment and the time value of money Basic investment classEtc. Green light Or by having them invest a small amount of money in their custody account.