As summer gives way to fall, many of you are busy sending your children off to their first day of college or high school. After years of homework and extracurricular activity, you may look back with pride on the time and energy that your family has invested in their growth and learning. At the same time, you may find that your child received little formal training on how to handle one of the most important aspects of their future lives — money. The American Council for Education found that only 17 states require personal finance classes in high school, and only 22 states even require schools to offer them. When your child leaves home for college, the military, or their first job, do you know if your child has grasped essential financial milestones for teens that will ensure they handle money wisely?
Taking control of debt, free debt advice, improving your credit score and low-cost borrowing. Renting, buying a home and choosing the right mortgage. Running a bank account, planning your finances, cutting costs, saving money and getting started with investing. Understanding your employment rights, dealing with redundancy, benefit entitlements and Universal Credit. Planning your retirement, automatic enrolment, types of pension and retirement income.
In a few short years, your teenager will be on their own, making their way through the world armed only with their wits and whatever it is you managed to teach them before they left the safety of home. One of the biggest advantages you can give them is a basic education in finance. If your teen can manage their own money, they will have a higher standard of living, won't have to call you for cash giving them a greater sense of financial independence while easing the burden on your checkbook , and have the freedom to choose their path without worrying about student loans , car payments, or credit card debt. An excessive debt level is the life equivalent of handcuffs.
If you're a college student or even an adult who feels as though your high school financial education fell short, you're not alone. To make matters worse, many parents don't talk to their children about finances, often because they either lack basic financial knowledge themselves or are embarrassed by their current financial situation. There are eight money-management skills every high school student should have learned before graduating; if you haven't mastered them, take the time to do so now to set yourself up for future financial success.