Today’s financial landscape is covered in uneven terrain. It can be hard for adults to navigate their finances, especially when they have kids. On top of the additional financial concerns parents have about raising kids, they may also worry about their children’s own financial future. Will they learn good habits? Will they save money and spend smart? Financial Education Benefits Center (FEBC), a membership benefits company specializing in financial and lifestyle wellness benefits, encourages parents to observe their children’s financial habits and to teach healthy habits for a healthy financial future.
According to a recent study, kids are saving an average of 43 percent of the money they get as gifts or allowance. Those are great habits to start developing young, but parents may want to build on those habits so kids are not overwhelmed by more complicated financial decisions later in life.
“So many people these days are struggling with their finances and debts,” said Brandon Frere, CEO of FEBC. “Parents looking to set their kids up for success might want to take some extra time when their kids are young to instill solid habits that will stick with them into adulthood.”
The most common advice for parents wanting to teach their kids good money habits is simply to talk to their kids about money. Instead of keeping finances an “adult topic,” kids can learn about how to manage money by being a part of the decision-making process, if only as an observer. That also means that parents need to both show and tell good money habits; kids often learn more from actions than from words.
An effective way to teach kids good money habits is by putting it in their hands. Having an allowance as income is a good way to teach them to make decisions on what to buy, such as one big item or several small items; or when to save. Parents can also use tools in teaching older children how to budget for more complicated finances. FEBC offers resources for budgeting that both parents and children can use in real or practice situations.
“When it comes to money, it’s better to start forming good habits early,” said Frere. “At FEBC we have several resources that can help with family finances and personal budgets, which can all be great tools to share with kids.”
About Financial Education Benefits Center
Financial Education Benefits Center is located in San Ramon, California. The membership company has already helped thousands save money and obtain the necessary education required to live a financially healthy life.
Financial Education Benefits Center has partnered with several name brand third-party companies to expand the financial and educational products and services available to its members and to provide a variety of wellness services as well.