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MMI Provides Basic Financial Education and Money-Saving Strategies for Children
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Kelly Rote (713) 394-3201 |
Release Date: April 19, 2004 |
NATIONAL CREDIT EDUCATION WEEK: MMI PROVIDES BASIC FINANCIAL EDUCATION AND MONEY-SAVING STRATEGIES FOR CHILDREN
Today marks the beginning of National Credit Education Week and experts from Money Management International (MMI), encourage parents and educators across the nation to take a stronger role in teaching children sound principles of financial management.
According to a 2004 survey by Quest Business Agency, only three percent of consumers surveyed mentioned school as their primary source for learning financial habits. Most consumers noted learning financial habits, good or bad, from their parents.
“While our children are being taught the basics of arithmetic, we see a need to go beyond that curriculum and start teaching basic financial principles as well,” said Cate Williams, vice president of financial literacy for MMI. “It is never too early for parents to start teaching their children good spending habits.”
MMI offers the following tips to parents for teaching kids about basic financial principles:
· Start young. Children that are old enough to count can be taught the value of money. When your child starts asking for toys at the store, you can give your child a small weekly allowance for them to use as they want, teaching them the power of budgeting and saving at a young age.
· Teach the motto “money doesn’t grow on trees.” Base the allowance that your child receives on the chores they do. This teaches children to understand the value of money and hard work.
· Teach your child the difference between needs and wants. Having the child make purchases with their allowance will make them more discriminating, and will prepare them to make smart financial decisions in the future.
· Talk to your child. Maintaining open communication about finances is important, and ensures that your child will come to you with questions or problems with money. Involve your child in day-to-day financial decisions, such as price comparisons at the grocery store, and they will be better equipped to handle their finances as adults. Count your change in front of your child. This helps expose your child to the importance of receiving correct change, carefulness with money and discipline with spending.
· Be a role model. Explain to your children how credit cards, and credit, work. It is also a good idea to involve children in financial discussions, such as planning a vacation or a major purchase so they see that their parents take finances seriously too.
“We want kids to start to practice basic financial principles today, rather than help them get out of debt in 20 to 30 years,” said Williams.
Annually, National Credit Education week falls the third week in April and is a time for credit and collection professionals to educate American consumers through seminars, workshops and other community events on the importance of practicing financial responsibility and maintaining a good credit score.
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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