WELLNESS WEDNESDAYS: Credit Counseling and Financial Education

WELLNESS WEDNESDAYS: Credit Counseling and Financial Education 

From a young age, most consumers are taught the value of a dollar, either through allowances, birthday money or small jobs. However, the sage-like financial education tends to stop at that point. Children are far more inclined to spend their money on superfluous purchases rather than open a savings account.

Mostly, this is an accepted practice as children aren't expected to have an understanding of the financial market. The problem occurs when these children grow up and continue to practice these spending habits on bigger ticket items, ultimately landing themselves in thousands of dollars of debt.

Credit Counseling and Financial Education 

For years, parents have been guilty of allowing children to skate through without no knowledge of financial responsibility, however, with a rapidly ascending number of young adults in debt, steps are being taken to educate children and families on how to wisely manage money, planting a seed that they hope will grow with time.

Though complex financial strategy is probably not the best route to getting youth interested, there are some simple ways parents can teach their children how to manage their money.

1. Money Jar

Setting up a clear money jar somewhere in the house is a great way to teach children how to save. If the children are given an allowance, they are instructed to "deposit" a pre-determined amount, maybe 5%.

At the end of the month, the family decides what to do with the "savings account"

2. Prioritize Expenditures

Most children, when given $5 will immediately opt for either a trip to the toy store, or will wait patiently for the ice cream man. Teaching children to prioritize their purchases in terms of importance, will teach them a valuable lesson.

Deciding not to pay for your 12-year olds movie night will encourage children to think more in-depth as to how they would prefer to spend money.When parents scale back slightly on what they spend on children, the children can then get a feeling of financial independence, helping to prepare them for life after childhood.

3. Educational Software

Sites like www.themint.org have great educational tools directed at children. Offering advice that kid's can understand, the sites aim to create a new generation of financially responsible consumers