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Smart Money: Personal Finance Education for Students

See ways to teach your kids about money as early as preschool.

GRAND RAPIDS, Mich. — Finances are often hard to understand, especially for children. In this edition of Smart Monday, financial expert Chris Harper shares some information that's easily  digestible to preschool information and how you can continue educate your students.

DELIBERATELY INTEGRATE PERSONAL FINANCE INTO STUDENTS’ EDUCATION

  • Financial independence is the ultimate goal.
  • Envision the financial skills your student will need once he or she enters the workforce.
  • Consider past financial mistakes you have made.
  • What lessons do you wish someone had taught you prior to adulthood?
  • Making sense of dollars and cents is critical; ensure it a part of your student’s educational development.

PRESCHOOL & KINDERGARTEN

  • Sow the seeds to grow life-long habits.
  • Associate results and rewards.  It isn’t too early to connect compensation with work.
  • Involve children in purchase transactions.
  • Make the process entertaining!

GRADE SCHOOL

  • Cultivate the seeds planted in earlier years.
  • Have your student open a bank account to introduce concepts of saving money and earning interest income.
  • Consider implementing an allowance for accomplishments.
  • Introduce the concept of taxation.  Sales tax is a simple way to introduce this reality.

HIGH SCHOOL

  • Develop budgeting and saving habits.
  • Set a plan for saving, giving and spending.
  • Educate students regarding debt.
  • Introduce students to financial record-keeping.
  • Ensure you have cemented the connection between work and compensation.
  • Expose students to elements of household finances.

COLLEGE

  • Complete the transition to financial independence.
  • Develop a shared understanding of parent and student responsibilities for financial needs.
  • Allow your student the freedom to make mistakes while keeping an eye on the broader picture to prevent catastrophes.
  • Ensure that your college student is utilizing a budget.
  • Underscore the need to approach debt with caution.
  • Find creative ways to reduce expenses: Utilize public transportation and carpooling. Determine if your student’s school offers free or reduced housing for students who serve as resident advisers. Limit the number of occasions you eat at restaurants.  Living at home may be an option for some students.
  • Contemplate financial implications of career choices.

Information courtesy of Chris Harper, CPA, MBA.

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