Why Should Parents Teach Their Kids About Debt Relief?Mar 16, 2018
Parents of school-age kids: this spring break, it’s time to turn the dining room into the classroom. With Generation X facing debt relief challenges, it’s never been a better time to pass financial lessons on to your kids, so they can make sound financial decisions later in life.
Today, the average Gen X Canadian is carrying more consumer debt than any other age group. This is due to several factors, as a recent BDO blog details. In Nova Scotia, this debt could be more susceptible to rate hikes too, as just 90.6 per cent of personal debt is tied up in mortgages, lines of credit and car loans.
With this in mind, take a different approach to spending during spring break. Having your kids with you for a whole week allows you to play the role of teacher. Parents can use experiences throughout the day to keep the money conversation going with their kids, whether it’s paying bills, paying with credit cards, or taking out money at the ATM.
You can even go beyond the day-to-day moments. Here are a few online resources you can use to help teach your kids about money.
- Sesame Street Finances for Kids has fun videos and games for younger kids.
- Talk with our kids about money has resources for kids of different ages and makes money lessons more interactive.
- ABC Life Literacy Canada is the starting point for any teachable moment you want to create.
If you’re struggling with debt, using spring break to instill good money habits in your kids can feel intrinsically rewarding. You can help manage their expectations and spend less during the break, avoiding the trap of spending that many Canadians fall into. Ultimately, these lessons for your kids can help you stay on your path of debt relief into the warmer months.
Want to learn more? This podcast focuses a wider lens on #KidsAndMoney. What can you do as a parent over spring break to provide financial literacy for kids of different ages? BDO Licensed Insolvency Trustees give their best tips.