In a recent survey, the National Financial Educators Council asked young adults ages 18 to 24 what high school courses would have been more beneficial to them: money management/personal finance, mathematics, science or social studies. The majority said money management.
Of course, this isn't to say that students should stop studying math, science or social studies. But the survey suggests that financial education should be part of every high school curriculum. Unfortunately, there are still a great number of schools that do not teach financial education at any grade. So it's up to parents to fill this void.
A good way to do so is by making your children's allowance work as a money management tool.
- Ask them to make a weekly and/or a monthly budget.
- Show them how to create a savings plan for short- and long-term goals.
- Review and assess with them on a monthly basis to make sure they are on track with their savings and that their spending is under control.
Whether you pay them for specific chores or just assign a weekly amount regardless is up to you. What's most important is that you take this opportunity to help them develop financial skills so when they're earning money in the "real world," they know what to do with it!
Yamila Constantino is a pioneer of financial education for Latinos. She is a member of the National Financial Educators Council Advisory Board and a winner of the US Hispanic Chamber of Commerce At the Table award for women entrepreneurs.
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