Financially Fit Fall

This article courtesy of Feed the Pig. Copyright 2011 American Institute of Certified Public Accountants.

Financially Fit Fall

Every fall, education takes center stage as kids head back to school, and it's a perfect time to help your household become more financially fit. Here are some tips to strengthen your family's financial understanding.Every fall, education takes center stage as kids head back to school, and it's a perfect time to help your household become more financially fit. Here are some tips to strengthen your family's financial understanding.

• Set a good example. The best way to teach good financial habits is to practice responsible financial behaviors in your own life. Sit down as a family and go over the monthly household budget. Take the time to explain the different expenses and where the money comes from to pay for these items.
• Prioritize. One of the most basic financial concepts is prioritization and balancing wants and needs. Have everyone sit down and make a list of what they view as your household's needs; it may end up that a few wants are included. Then, go through the list and discuss what makes some more important than others, such as why it is more important to pay the electricity bill than to have premium cable.
• Promote saving. Explain to your family that when there is something that you really want, needs still come first, which is why it is important to save. Consider giving your children an allowance for completing weekly chores, and help them figure out how long they need to save to reach their savings goal. This way they learn the delayed gratification of saving and the importance of setting goals.
• Stay informed. In order to make informed decisions about your finances, stay up-to-date on current events that may influence your finances, such as a shift in interest rates. Make sure that you are aware of any changes to your accounts and other aspects of your finances, such as seasonal heating and cooling bill fluctuations.

Financial understanding is a life-long endeavor, and the earlier your children start on the right path, the brighter

financial future they can have. For more information on talking to your family about money, click here. 

Visit www.feedthepig.org for more money-saving tips.