Envision Financial helps parents with lessons in money management

Parents can begin lessons in money management with kids as young as three

 

With the return to classes, brown-bagged lunches and regular learning routines back in full force, there’s no better time for parents to focus on their children’s financial know-how.

“Money management isn’t a subject that most schools focus on, and so it’s really up to parents to teach these foundational skills,” says Jennifer Flentge, an investment expert with First West Credit Union’s Envision Financial division “Be honest and open about money with your children in an age appropriate manner. Look at everyday situations as opportunities to learn. For example, let them know how much is budgeted for entertainment and suggest alternatives like borrowing a movie from the library instead of going to the movie theatre if that budget is already met.”

Research suggests that children’s financial habits are formed as early as age seven, signalling a need for conversations about money to begin as soon as a child is old enough to understand the basic concepts.  From age three to five, these lessons can include the difference between saving and spending, what a need is versus a want and the idea that sometimes you need to wait before you can have something—a lesson easily demonstrated with saving, spending and sharing jars.

“Setting up three money jars is a very visual and tangible way to see where their money goes. The spending jar would be for them to spend as they wish, a saving jar to save and the third for charitable giving. Alternatively, with today’s tech-savvy children, allowing them to do this online is effective and provides a great opportunity to learn about earning interest on their savings.”

Between age six and 10, financial skill-building should grow to include candid explanations of your decision-making process in everyday situations (choosing between brand name and generic products in the grocery store, for example—or calculating your family’s savings when buying in bulk.)

It’s also an essential time to give kids a bit of money to learn with, while tweens and young teenagers can begin to understand compound interest and the difference between good and bad debt.

Flentge also recommends that parents avoid linking weekly allowance to household chores. “Chores are a part of life and living with people in a home,” she says. “Teach your children that the basics such as cleaning their rooms, making their beds, and setting the table are expected and they can earn extra money by washing the car, taking the bottles to the recycling depot or setting up a lemonade stand.

“The best financial help any parent can give their child is information and experience—and your financial advisor can help you identify everyday teachable money moments if you’re unsure of where to start.”

 

About Envision Financial

Envision Financial is a premier provider of banking, investment and insurance services for residents and businesses throughout the Fraser Valley (including Hope,) Lower Mainland and Kitimat regions. As a division of First West Credit Union, B.C.’s third-largest credit union with 53 branches and 40 insurance offices throughout the province, Envision Financial brings innovative products, an extensive branch network and local decision making to the banking experience. For more information on Envision Financial, visit www.envisionfinancial.ca.

 

 

 

Just Posted

Chilliwack prolific offender wanted yet again

B.C.-wide warrant issued for David Allen Geoghegan

One man, two women charged with stolen pickup downtown Chilliwack

None of the three have criminal history in B.C.

Chilliwack-Hope MP says new summer jobs grant application no longer includes ‘values test’

Those with anti-abortion beliefs left out last year because of requirement to respect the Charter

Enrolment, education assistant increases make for no surprises in updated school district budget

Amended budget reflects 2018-19 changes that were made after recieving provincial funds in Dec.

Prices still rising, Chilliwack real estate back in balanced territory

Local market is steadier compared to points west with higher increase in average sale price

VIDEO: Students in MAGA hats mock Native American at Indigenous Peoples March

Diocese in Kentucky says it is investigating the matter, caught on video by onlookers

CONSUMER REPORT: What to buy each month in 2019 to save money

Resolve to buy all of the things you want and need, but pay less money for them

Want to avoid the speculation tax on your vacant home? Rent it out, Horgan says

Premier John Horgan and Sheila Malcolmson say speculation and vacancy tax addresses homelessness

UPDATE: B.C. woman and boy, 6, found safe, RCMP confirm

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

PHOTOS: Women’s Marches take to the streets across B.C. and beyond

Women and allies marched worldwide protesting violence against women, calling for equality

VIDEO: Giants wrap southern swing with 6-4 win in Spokane

The Lower Mainland-based hockey team defeated the Chiefs Friday night.

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Federal Liberals announce former B.C. MLA as new candidate in byelection

Richard Lee will face off against federal NDP leader Jagmeet Singh

Most Read