The Skills to Pay the Bills (Literally)

We’re wrapping up our series on finances and the family with the third, and final, building block in preparing kids to be financially capable adults: skills. Skills are the final piece of the puzzle that prepare kids to use their financial mindset and good financial habits to become fully financially capable as teenagers and adults.

Skills are the specific financial knowledge and problem solving methods we all use to make healthy financial choices. What is a credit card and how is it different than a debit card? How do you compare interest rates on savings accounts? What sources of financial information are credible and reliable? Skills are far more age dependent than the other two building blocks; it’s difficult to imagine explaining how a credit score works to a 6 year old. But like mindset and habits, there are things you can do to help your children learn these skills as they grow.

As with the other building blocks, the easiest way for most parents to get started with teaching skills is to begin involving your kids in your day to day and month to month financial activities. Don’t make it a chore, but they should know that you check your credit report a few times a year for accuracy (You do, right?). If you accidentally miss a payment on your credit card show them the late fee and what it cost. Just like you want to prepare them for adulthood in other ways, the basic financial skills they’ll need can come from you. Want to learn more about what financial skills you can work on at different ages? Keep reading here.