Do you tell your child the amount of income, amount of debt, and the type of investments do you have? According to Elizabeth Schiever, director of the High School Financial Endowment for Financial Education, Denver, children should know the financial condition of the child’s family as soon as you catch this explanation.
According to Elizabeth, if a child has a realistic picture of the family finances, it will help the children develop good habits in financial trouble. Tell them if the circumstances are serious, and told us about you tell them what they can and can not when they ask you to buy something.
If you feel your child is ready, usually when you have children aged 9 to 10 years, Elizabeth encourages parents to invite children to sit together and categorize money for various needs. Then gradually, teach them about the family budget in line with their age. Including the type of investment and insurance you have. Because by the time the child attends college, they’ve had to get a clear picture of the financial status of the family.