But Canadian parents are still unsure about the best ways to teach their own children how to be financially smart.
According to a recent ING survey, 92 per cent of the parents accepted the sole responsibility for this vital education. But 61 per cent admitted they hadn't really tried to do anything.
They found it easier to talk about bullying, smoking and drugs than about money.
Only 22 per cent of British Columbians gave themselves an A in personal knowledge about money, the survey found.
If you are in the remaining 78 per cent, let's turn it around: See this as an opportunity to educate both yourself and your children.
Focus on three main areas: ONE: Balance instant vs. delayed gratification by differentiating needs and wants. List spending items in order of priority (needs first, then wants); discuss when saving money to have more to spend later is more appropriate than spending and enjoying now.
TWO: Realize outgo can't exceed income, and the costs of borrowing. The concept is simple; refer back to the preceding point to help with implementation.
THREE: Put your money to work. Explain how interest works for you when you save (rather than against you when you borrow), and the concept of investments going up in value - along with the risk of loss.
Always tie these lessons to the child's reality, whatever her or his age. For some ideas, see http: //life.familyeducation. com/money-and-kids/ parenting/36332.html
Every family will have its own feelings about how much to reveal to children about the family's finances.
Discuss this with your partner if you have one or with other family members/ families. Read about the topic, then do what feels right for you. The same applies to giving allowances.
Once the child starts to work outside the home, explore basic tax planning such as filing his/her tax return to build up RRSP contribution room even if there is no tax to pay, or shifting income to lower the family's total tax burden.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally - email [email protected].
