Across the world, schools are closed, and millions of children are forced to conduct school from home. Because of this, parents are being put into an unexpected position… the new teacher. This new role may make it may seem like there is a lot to do with little time. Setting home school priorities can be difficult, but there is a subject that can help children in and outside the classroom. Personal finances. The positive effects of being financially literate go beyond school, but help out families and ultimately society.
Here are three financial related life skills that parents could teach their kids about while schooling from home.
1. Spending Habits & Balancing a Checking Account
Spending Habits. Everyone has them, whether they’re good habits or not. Whether they’re productive or even necessary. By analyzing your family’s spending habits, it will help you determine what you spend money on and why you spend that money. There’s always room for improvement and getting versed on spending habits is a responsible way to teach personal finance.
2. How Interest Rates Work
Interest rates are everywhere and it will be beneficial to your child to learn about rates long before they make a big purchase like a car or house. Auto loans, mortgages and credit cards all live off of interest rates. By teaching your children how they work now, they’ll be ready to take on the huge financial moments in their lives.
It’s not only important teaching children how they work, but it’s also important teaching just how serious interest rates are. Large amounts of debt can ruin lives, and it’s a very avoidable situation.
3. Savings and Investing for the Future
On the flip side, interest rates can be extremely helpful in the case of money you are saving. Teach your child that they can earn interest from the bank that uses or holds their saved funds.
Setting up a savings account or a CD with your child can be a great way to teach the importance of saving money and how investing in yourself can pay off. At American Bank & Trust, setting up any personal savings account is easy. Find competitive interest rates that’ll work best for you and watch the savings grow!
Financial knowledge lasts a lifetime and it is a skill that everyone will at one point or another have to use. By teaching these important lessons and through the help of American Bank & Trust, your child’s financial future will soar.
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