1: Figuring out your net worth
2: Living within your means;
3: Saving or paying yourself first;
4: Understanding the difference between good debt and bad debt;
5: Establishing a financial safety net;
6: Knowing the difference between needs and wants;
7: Teaching delayed gratification and how to set financial goals;
8: Tracking your spending;
9: Saving now for your children’s education;
10: Presenting a united money front.
These 10 ideas come from Robin Taub’s A Parent’s Guide to Raising Money-Smart Kids published by the Canadian Institute of Chartered Accountants, which wanted to play a more active role in developing Canadians’ financial literacy, a need recognized by the recent Task Force on Financial Literacy. The guide helps explain the importance of learning about money by guiding parents through the five aspects of money management – Earn, Save, Spend, Share and Invest.
The book can be purchased either as a physical book or an ebook at http://www.castore.ca/moneysmartkids.
There are also free downloads of worksheets from the book at http://www.financialdecisionsmatter.com.