Homeschooling Your Teen To Financial Success

Can you imagine a scenario where your child is in their mid-thirties and still buried in student debt? This is a reality for many parents. By including financial education in your homeschool curriculum, you will play a critical role in providing a better future for your child.

When talking to parents who homeschool their children, most understand the importance of teaching practical money matters. Unfortunately, many parents don’t know where to start. They never received practical financial education in school and there is a dearth of home financial education curricula on the market.

If you don’t currently homeschool your kids, you should when it comes to financial education! Financial education is not taught in most public high schools, and recent surveys have shown that more than 70% of young adults view their parents as their primary source of financial education.

The school curriculum focuses almost exclusively on the subjects necessary for young adults to be accepted into college. That’s important though; Equally important is the need to be financially prepared when they step foot on a college campus. By the time they hit many college campuses, credit card companies are there offering free gifts to any student who signs up for a student credit card.

To prepare your homeschooled child for the real financial world when they go to college, here are a few simple steps to help them feel confident that they can handle the lure of easy credit and succeed financially.

1. Relate money to lifestyle. Most young people are not motivated by having a big bank account. It is what provides them with money that encourages them to learn money management skills. It’s the experiences they want to have, the places they want to travel to, the people they want to help and get the toys they dream of.

Find out what your child wants, what he dreams of and relate it to money. It’s a great homeschooling exercise that allows you to connect with your child on a deeper level while teaching them a valuable skill.

2. Develop a savings plan. Give your child a head start by developing a savings plan. As part of your homeschool curriculum, have them manage their own finances and create a working budget. If your child still lives at home, require that they save at least 40 percent of the money they earn or are given for long-term savings. Not only will this help them start building a nest egg, but it will also help them develop a good saving habit.

An essential element to include in your homeschool budget curriculum is helping them understand the difference between a ‘need’ and a ‘want’. Wanting a $5 cup of coffee every day adds up to over $1,800 a year. These essential homeschooling lessons will help counteract the years of ‘buy, buy, buy’ ads you’re exposed to.

3.Open Accounts. To engage your child in a real-world homeschool activity that will prepare him for the future, have him open his checking and savings account. Your child will need them anyway, so why not start early? The more you will find that the longer the relationship they establish with a bank, the more benefits they will receive.

Your student checking account is the center of your finances. It is suggested that you open two student savings accounts. One for long-term savings and another student savings account for fun things they want to experience. The long-term student savings account will provide them with financial security, while the fun student savings account will allow them to fully experience life now.

4. Invest early and consistently. When you homeschool your child, one of the most important math lessons you can teach is the power of “compound interest.” This allows your child to earn money on the initial investment plus all the money the investment has already paid back.

In the homeschool math curriculum, show them how quickly a small investment can add up. Just an investment of $80 each month could mean over a million dollars in their account by the time they are fifty. Homeschooling your child with these practical financial lessons will give them an edge most people won’t.

Financial education should be a central part of your teen’s homeschool curriculum. With practical financial education, you’ll avoid common financial mistakes, enjoy life more, and be well on your way to securing your financial future.

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