Since kids don’t get enough financial education in school, it’s our responsibility to teach them ourselves. Here are some easy ways to get started.
Sharon Ko: April is National Financial Literacy Month, a time to help people get smart about money. Tonight, we’re going over the ways to empower your kids to raise their financial gain.
Karl Eggerss: First thing people should do is really model their situation and try to be a good example. If you’re buying something online every single day and it’s showing up on your doorstep, your child’s going to see that and think that they can just buy as much as they want, there’s not really any repercussions for that.
Sharon Ko: Another suggestion, let them take a look at how you pay for things.
Karl Eggerss: Open up your finances, if you’re comfortable, and you can do as little or as much as you want with this, but perhaps let them see a paycheck. Explain to them what these deductions are, assuming you know what they are. How much is going to the 401k, how much the government takes out for taxes, really start explaining those things.
Sharon Ko: And push them gently, or shove them, whatever your style, to make their own money.
Karl Eggerss: A child in our neighborhood that literally goes door to door and takes the trash cans from the street for elderly folks and puts it up into their garage for them, and they pay them a little something. There’s a little hustler out there.
Sharon Ko: The last one is a big one, teach them about debt.
Karl Eggerss: It can ruin people’s lives. We see all the problems with debt. So the kids have a great advantage, their age because they can take advantage of compounding, which has a huge impact over the long-term. The compound to take advantage of their age, saving 10% of everything that comes in the door, whether it’s birthday money or a part-time job.
Sharon Ko: If you want to get some side hustle ideas to start today, we have more under this story on Kensfive.com.