Financial literacy is an essential life skill necessary to make informed decisions about budgeting, borrowing and more. Equipped with this knowledge, kids grow up prepared for financial independence.
Teaching kids and teenagers financial literacy often falls on parents’ shoulders — and it isn’t always easy. You need to both keep your youngster involved and interested and make the process fun. One way is to use exciting opportunities, like vacations, to teach your kids good saving habits.
Set goals for you and your kids
So, you’re going on vacation. It’s time to set some goals.
Decide where you’re going
First, decide on where you’re going. Use selecting a destination as an opportunity to get your kids talking about where they want to go and to create excitement. Pick a place together and let your kids know that the trip can only happen if they chip in financially.
Determine the costs
Whether your family is planning a Disneyland trip or a vacation to your kids’ favorite spot, it’s time to determine the costs.
Involve your kids in the process. Break down the numbers for transportation, lodging, entertainment and other expenses. Show your kids the total and discuss how they’ll help you save that amount.
Set a timeline
Saving is a task, and that task needs a deadline. Talk to your kids about when the vacation is happening and agree on the date by which you need to meet your savings goal.
With the deadline set, you can move on to the most important part — growing your vacation fund.
How to build your savings
Let’s be honest: Saving money is rarely fun. Still, you need to keep the process engaging for your kids and involve them as much as you can.
Here’s what you can do.
Make a family budget together
With your common goal in mind, sit down with your kids and create a family budget. Show them how much money is…
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