Are you worried about your kids' financial future? You're not alone!
A new study of 300 mothers, commissioned by McGraw-Hill Federal Credit Union, found that only one-third of mothers who have children 18 and under think their kids are financially well-prepared for their future.
I'm raising my hand, too. My 16-year-old son seems clueless about finances, even though I have tried to coach him and talk to him about saving, not buying on credit, etc. His interest goes only so far to complain when I make him put part of the money he receives as gifts into his savings account.
The study, conducted by Toluna, PLC, revealed some interesting facts from the mothers who were polled:
- 49 percent of moms think their children are unprepared to get a job.
- 44 percent think their children will not be able to finance college.
- One-third think their children are “not at all prepared” to save money or live on their own.
The credit union offered some tips to help kids be prepared financially:
- Give your child an allowance so he can learn about what things cost and how to save.
- Talk about money. Explain to your children how you budget, and use the ATM and credit cards.
- Teach them to budget and how to save for something special.
I think I'm going to need to do a better job of getting my son ready for financial independence. I did get him one of those cards that the parents can load with cash, and I put his allowance on that. But I'm not sure what that teaches him -- except that money magically appears every month!