TransUnion.ca Offers Tips on Giving Kids the “Money Talk”
TORONTO, May 28, 2009 – At the age of seven, children typically start receiving an allowance, according to a survey by Environics Research for CIBC, but a Rand Youth Poll finds only 35 percent of parents talk to their children about money management. With the economy taking its toll on the nation’s pocketbooks, now is the time to help set today’s youth on the path to responsible financial management.
One in four Canadians owes at least $5,000 in credit card debt, according to a recent survey commissioned by TransUnion.ca. In order to avoid raising another generation of over-spenders, experts at TransUnion.ca recommend that parents start discussing money management and financial basics with their children at an early age. Parents can start small, teaching their children about saving and spending, and as they grow older, provide guidance on more complicated topics like how to manage credit and debt.
”Managing money is an important life skill that can set young Canadians on the right path,” said Tom Reid, director of consumer solutions for TransUnion.ca. “By helping children understand financial basics and money management early on, parents can empower them to make more informed financial decisions down the road, especially when it comes time to apply for student loans, build budgets and spend money wisely.”
To help parents best educate their kids about managing money, TransUnion.ca is helping them tackle this tough subject by providing the following tips:
- Start Small – Young children can learn through interactive activities with parents. Use daily errand activities like going to the grocery store or bank to teach children impromptu lessons about budgeting and money.
- Weekly Allowances – Encourage children to save a portion of their allowance each week by calculating how much they could save in a month or a year. Opening a savings account for older children can educate them about making deposits and withdrawals, along with the benefits of saving money as they watch their bank account grow.
- Wants vs. Needs – Encouraging kids to earn and save for something they really want is a smart way to teach healthy spending habits and delayed gratification. Help your child keep track of their savings with a chart or offer them some incentives – for example, for every $20 they save, you could add $2 more.
- Teaching Teens – Set guidelines for their use of a prepaid credit card or a parent’s card and explain how credit works. Sit down with your teen each month and go over the credit card bill and receipts to show them how fast their charges can add up.
- College Days – Teach your kids about responsible credit card use, the dangers of debt and the importance of paying bills on time before they go to college. Encourage them to order their credit reports, as many don't realize the impact of their spending and payment habits until they see the effect on their credit score firsthand.
For more information about credit management, please visit www.transunion.ca.
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Based in Toronto, with global headquarters located in Chicago, Illinois, TransUnion provides local service and support throughout Canada. Visit www.transunion.ca to learn more.