Do your kids know what money is and how it works? If they do chores around the house, do they get money? Do they watch children or mow lawns to make a little extra money? Do you bring them to your office on school breaks so they can see what a "real" job is like?
Do they know the basics of how to save? Do they know how to decide which deal is the best? Do you show them how to handle money in a good way?
When I was HR Manager at a consulting firm, we gave a college student a summer job as an intern. He came to me to ask how much would be taken out of his first paycheck for FICA and Medicare. He told me in a nice way that he didn't want this taken away anymore, and I had to try not to laugh. I started to tell him that payroll taxes can't be avoided, but then I remembered that this was his first job and he had never been told how much of his pay he could keep. He really thought it was all his because no one had ever told him Uncle Sam got his share first.
The number of college graduates with credit card debt in the thousands of dollars is shocking. It turns out that when they signed up for their first year of college classes, they also signed up for a credit card without knowing how much it would cost them in the long run. So, they have to pay off years of debt before they can start working or saving in a 401(k) plan. Sad to say, they still have to pay for the pizza they ate two years ago.
It's very important for kids, especially teenagers, to understand money and how it moves in and out of your hands over the course of their lives. How to put it away and how to use it. Why is it important to help other people by giving money to charities? If you don't learn about money when you're young, how will you ever be able to handle it when you're older?
Parents have a duty to teach their kids about money before they go out into the world and get their first paycheck. Having this information gives them the confidence to make good money choices as they move through life.
