Celebrate Take Your Kids to Work Day
April 26 is National Take Your Kids to Work Day — not to mention the entire month of April is National Financial Literacy Month, so why not use this time to teach your kids about the financial world. Teach them practical financial skills such as earning money, paying bills, and how to afford the things they want.
Instead of having your kids file paperwork, sit bored in your office, or take a tour with your assistant, make this Take Your Kids to Work Day a learning experience. It’s never too early to start teaching them about how the real financial world works, including how to make and stick to a budget.
The MissMoneyBee team put together some great financial topics that you can discuss on Take Your Kids to Work Day — or on any day for that matter.
• Paychecks and Taxes. Do you ever think your kids act like money grows on trees? It may have something to do with the fact they simply don’t understand how much you make, how much you take home, and how much everything actually costs. Explain to your child how paychecks work and how money gets taken out for things like taxes and benefits. You can even show them paystubs or, if you have the time, set up an exercise where you give them their own “salary” for the day and have to figure out how much money they would actually take home.
• Explain the reward of work benefits. Did you know roughly 3 out of 4 working-age Americans have less than $100,000 saved for retirement? Taking into consideration you need at least 75% of your income each year after you retire, many Americans may only be able to retire fully for a couple of years. Use the day as a way to teach your kids about saving and how important it is to start saving for retirement early. Show them how your 401(k) works if you have one and even set up an exercise with investment to see how they would invest it.
• Build a budget. The final thing you can do to help your kids get ready for the real financial world is to teach them how to create a budget. Set up an exercise where you tell them how much they’ll take home and what they have to use the money to buy. In the exercise, make sure to provide real-world costs for things like power, utilities—and especially how much your mobile phone service costs. Also include things like costs for different kinds of cars and insurance. Creating a mock budget will give your kids a better understanding of how money gets spent.