Page 3 - Winter 2019 Destination: Retirement '77 Fund, JRS, PARF, EG&C

WINTER 2019
WHEN TO TEACH YOUR CHILDREN ABOUT FINANCES
It’s never too early start teaching your children about nances. In fact, the earlier, the better! Although some schools teach personal nance concepts, a nancial literacy test given by the National Financial Educator’s Council discovered that test- takers from 15-18 years old scored a low average of 59.6%. Finance may not be the most exciting topic to your kids, but there are some strategies to incorporate nancial education into their everyday lives.
1. Wants vs. needs: Since toddlers won’t
understand most nancial terms, a good
topic to start out with is the difference
between wants in needs. A great way
to practice this concept could be creating a pretend ‘grocery store’ and providing a shopping budget. This can help them differentiate what items are more important than others and how much they should spend in a real life situation. Bonus points: next time you are at the grocery store, try out this concept with your child to see how they differentiate items that are more important than others.
2. Set an example: Both children and adults are guilty of wanting to rush into making purchases. It’s important to teach children that delayed grati cation creates self- discipline, which can lead to better savings toward college, retirement and other expenses. A way to re ect this lesson as a parent could be to refrain buying your child every item/service they request along with avoiding any unnecessary personal purchases. Talk to your child on how you do this as well.
3. Field trips to the bank: Showing your children how to open a checking account or take out a loan prior to their adulthood is a good way for them to see real-life nancial experiences. When you go to the bank, explain to your child what you do to organize your money and what transactions you are making. This can make the bank a less intimidating environment when your children start to earn an income of their own!
Do you have any ideas or tips whenever you teach your children about nances? Send
us your ideas on Facebook, Twitter and Instagram! Here at INPRS, we care about our members’ nancial education. If you have any questions about your nances give us a call at (844) GO-INPRS or visit our website at www.inprs.in.gov. To read about more ideas regarding this topic, check out this article: bit.ly/2QMeIgq.
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