Greensboro, NC -- Matt Logan of Matt Logan, Inc. says he believes having a financial talk with your kids is just as uncomfortable as having the sex talk for some parents.
"One interesting fact that came out of a Charles Schwab 2008 survey titled "Parents &Money" is that around sixty-nine percent of parents admit to feeling less prepared to give their teenager guidance about investing than they do having the 'sex talk' with them."
According to a 2008 Financial Literacy Survey National Foundation for Credit Counseling and M-S-N Money almost 50% of those who closely monitor their finances say that they learned about personal finance from their parents or at home more frequently
"Many children never hear about personal finance from anyone and are left to figure it out through trial and error as adults. Don't assume that your children are learning about financial concepts in school. I meet with many people with advanced degrees in business, law and medicine who are many times admittedly financially illiterate."
Logan says take the steps to speak about your child and discuss how banking, debt, saving and investing work.
"If you are not comfortable with the subject or your own financial literacy, there are resources online to become familiar so that you can help your children. There are many articles on my website and there are resources out there locally such as Junior Achievement where you can find these resources to help. One way to think of this is to think of errors you have made financially that you can use as teaching points so your child does not make the same mistakes."
If you are working with a financial planner and your child is a little older, bring your child along for a financial review so that they become comfortable with the terms.
Many times your financial planner will be more than happy to offer a brief financial education to your teen. You may even accidentally spark an interest and possible career path for your child. At least they will have some practical knowledge of how investing and financial planning works
Be sure to give your child financial responsibilities. Matt suggests, "I would start with an allowance and bank account for elementary age students. As they get older, you can have them balancing their account, making purchases such as a first car. A first job is a great financial education and many times serves as a motivator. I washed a lot of dishes before I was 16 to save for my first car which I immediately wrecked but that was a learning experience about saving and insurance."=
Matt also says you should teach your children how to invest in their later high school years as this will really help them go a long way.