Teach Kids Financial Fitness

Toronto, February 5, 2007 — How often have we said as adults, "If only I'd known then what I know now?"

Well, when it comes to financial fitness, it's never too early to give young people a step up towards a more financially secure future. Developing financial savvy and good habits when you are young can pay off later in life when it really counts. Here are a few tips offered by CFP professionals Kurt Rosentreter and Diane Koven:

For younger children, Diane Koven CFP, says:

"Involve children in planning for major family purchases such as a vacation to Disneyland or the purchase of a backyard swimming pool. Discuss how much it costs and what it took to save the money."

"As parents, try to set good examples in your own behaviour from which your children can learn — e.g. not over-extending on credit, establishing budgets and regular saving plan, etc."

"Pay young children for 'extra' chores and teach them how to budget their earnings — e.g. assign one jar for savings and one for spending."

"Give your children an allowance (separate from chore earnings) so they can learn early how to manage regularly incoming money (e.g like a salary). Provide guidance along the way so they spend and save wisely."

For older children, Kurt Rosentreter CFP, suggests:

"Teaching fiscal responsibility at an early stage gives them a good start when they reach the workforce."

"Involve your children in the budgeting process in paying for post-secondary education so they appreciate what is involved."

"Empower your children to have some responsibility in paying for school — e.g. discuss student debt issues, encourage part-time work, explore various lending and grant options, etc."

"Involve them in discussions regarding your savings — e.g. RESPs and/or other investment decisions related to funding their education."

For our Educating Youth resources online, please visit: http://www.fpsccanada.org/public/educating_youth

CARE TO HEAR MORE? We can put you in touch with these and other CFP® (Certified Financial Planner®) professionals to talk about how to inspire and teach young people about money matters.

Financial Planners Standards Council (FPSC) is a not-for-profit organization established in 1995 to lead the development of the financial planning profession. FPSC develops and enforces the highest standards in financial planning competency and ethics for individuals who hold the CFP® (CERTIFIED FINANCIAL PLANNER®) in Canada. There are currently about 17,000 CFP professionals in Canada and more than 100,000 individuals who have earned CFP certification in 20 countries around the world. See www.cfp-ca.org for more information.

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