CHARLESTON, SC (WCSC) - According to the Program for International Student Assessment, one in five 15-year-olds in the U.S. lack basic financial understanding.
It’s a subject many parents hardly have with their kids but an area that Financial Coach Debbie Kidd says is vital for a child’s future financial success.
“You got to teach them because they are leaving high schools and colleges with no idea how to manage money,” Kidd says.
She says putting the effort in now, starting as early as the age of 5 can pay off in the end. She says it starts with teaching simple basic skills like needs versus wants.
Kidd says a weekly allowance can help teach this.
“Allowing kids to have their own money gives you the opportunity to teach them how to spend and how to save that money. If we teach you will get 10 dollars and 10 percent goes to savings, 10 percent goes to church and the other to what you want,” says Kidd.
Kidd says letting your child save up for some things that they want adds value to the item and shows kids delayed gratification.
She says leading by example when it comes to spending, saving and paying bills on time is the best teacher for your child.
“Put the effort in. Show them how to pay on time and save and manage money because you are showing them how to do it, and they are learning from what you do,” says Kidd.
Kidd says parents might feel unqualified to teach their children about money, but says it does not take a degree in finance or special knowledge to teach it.