You’re ready to talk about budgeting with your family, but where do you begin?
If the idea of discussing finance still feels overwhelming, you may consider breaking it down into four main ideas. These ideas are also known as the “four pillars of financial education.”
- Earning: Whether you’re a parent, partner, or caregiver, understanding how money is earned in a household is key to many family conversations.
- Borrowing: While debt is something we would all like to avoid, borrowing money can be a recurring financial event throughout life. Whether it’s borrowing money from parents for a small purchase as a child or applying for a car loan for the first time, understanding borrowing is an important contributor to financial health.
- Spending: One of the keys to financial health is understanding the concept of putting aside the income needed to make purchases related to both needs and wants. Talking about both spending and saving as one topic can be helpful so that family members understand that to spend, you need to save.
- Financial decision-making: In addition to talking to your family about making big financial decisions, such as making a large purchase or contributing to a savings account, you can develop their financial skills further by modeling positive financial behavior. As a member of any family, doing your part to make responsible choices can have a profound impact on others.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
Article written by EVERFI