Financial Literacy Month - A Good Time to Have 'the Talk' With Your Teen About Money

The Illinois CPA Society offers suggestions on raising money smart teens

CHICAGO, March 26 /PRNewswire-USNewswire/ -- April is Financial Literacy Month, and the recently announced findings of the annual "Teens and Personal Finance Survey" conducted by Junior Achievement (JA) and the Allstate Foundation, indicate it might be wise to pay a little more attention to the importance of financial literacy – especially with teens.

According to the survey's findings, 42 percent of the teens who don't manage their money aren't even interested in money management. Despite this lack of interest, 86 percent still think they'll be as financially well-off or better off than their parents. The discrepancy between planning and results raises the question of whether or not the next generation is ready to handle their own finances. The Illinois CPA Society suggests parents may have some work to do to prepare their teens for the future. Financial Literacy Month's a good time to start talking money with your teen, so the Illinois CPA Society shares these thoughts on the subject:

Communicate - It's not easy to get your teen to talk or to listen, but do try to include them in conversations about family finances. Help them build a better understanding about saving and budgeting through real life examples - like why there will be no vacation because the roof needs to be repaired or being able to buy a new car because you saved for it. Encourage them to participate when you sit down to pay bills or do your taxes and explain what you're doing and why. Talk about your choices when shopping or how you comparison shop online.

Encourage them to take responsibility for their own money and purchases - Don't just handle everything for your teen. If they have a cell phone, do they pay the bill or even know the monthly cost? Tap into their interests and tie it to money, whether it's music and what's being spent on downloads, sports and the cost of events or equipment, or the latest fashion fad and finding a bargain or shopping at a resale store to achieve the same look. Get them in the habit of saving; even $1 a week can start a positive pattern that will last a lifetime.

Be a role model - Take a good look at what you do and say when it comes to money. If it seems to flow freely without any questions or concerns, then your teen might make the assumption money will always be there. Think about the attitudes on money you convey – do you take it seriously and plan how you use it, or give it little thought and find yourself constantly scrambling to make ends meet?

Provide positive reinforcement - When you talk money, the topic shouldn't be all doom and gloom despite the current economy. Make the connection between the right decision and a reward. Notice smart choices and a little spending restraint, and compliment your teen on their wise money moves not just their mistakes.

Educate yourself, so you can educate your family - Make sure you're armed with some financial knowledge so you can pass along that knowledge to your children. Beyond such basics as budgeting and saving, know what a good credit score is and the impact it has on your ability to get a mortgage, car loan or credit card. Brush up on investment terms, savings and credit card rates, and find out more about college loans and financial aid forms.

Because it's Financial Literacy Month, there are plenty of educational opportunities in April. In the Chicago area, the Federal Reserve Bank of Chicago has organized Money Smart Week Chicago. From April 17 to 24 there will be more than 450 classes, seminars and activities, including these presentations by Illinois CPA Society members:  

Tuesday, April 20, 5:00 - 6:00 p.m.: "Making Your Money Work for You: Basic Budgeting and Credit Management," part of the City Treasurer's 4th Annual Wealth Fitness Fair; Liz Schwartz, CPA, and Angela Goyke, CPA, at Harold Washington College, Washington Hall, 30 East Lake Street, Chicago.

Tuesday, April 20, 7:00 p.m. - 8:00 p.m.: "Got Money? Tips for Every Teen on How to Spend Wisely and Save for What You Want;" Mark Gilbert, CPA/PFS, MBA, at Chicago Public Library, Sulzer Regional Library, Community Meeting Room, 4455 N. Lincoln Avenue, Chicago.

Thursday, April 22, 4:00 - 5:00 p.m.: "Got Money? Tips for Every Teen on How to Spend Wisely and Save for What You Want;" Matrice Caldwell, CPA, at Chicago Public Library, YOUmedia Harold Washington Library Center, 400 South State Street, Chicago.

Thursday, April 22, 5:45 p.m. - 6:15 p.m.: "Basic Budgeting" part of Elgin Community College's Money Smart Week Fair; Jon Hofmeister, CPA, MST, at Elgin Community College, 1700 Spartan Drive, Elgin.

Check the Money Smart Week site, www.moneysmartweek.org, for the most up-to-date listings of events. Information and resources are also available on the Illinois CPA Society's site, www.icpas.org, which also includes a "Find a CPA" directory should you need more guidance to build a stronger financial future for your family.

About the Illinois CPA Society

The Illinois CPA Society, founded in 1903, is the fifth largest state CPA society in the nation, with more than 24,000 members. It is the premier professional organization that represents CPAs in Illinois. During its over 100 years of existence, the Society has advanced the highest ethical and financial standards of the profession, and has been a leader in educating the public on financial issues.

SOURCE Illinois CPA Society