Many students who graduate from high school may feel they are ready to enter tertiary schools or the work force. However, diplomas don’t guarantee that young adults are prepared financially for their new ventures.”We make a point of talking to our kids about sex, drinking and drugs to keep them safe when they’re out from under our protection,” says Patricia Seaman, director of marketing and communications for the National Endowment for Financial Education (NEFE), a non-for profit financial foundation in the U.S. “We have to put money on that list, too. When parents take the time to discuss good financial practices, their kids are better prepared to navigate their way through budgeting, banking and credit cards.”Parents provide the most influence on their children’s financial knowledge, attitude and behaviors. By watching their parents navigate the family finances, children gain insights into money management. Here are some tips for covering banking basics with your child before (s)he leaves the nest.Banking on your childYour child will need a bank account. If you open an account at your bank, you will be able to transfer money easily and, in certain cases, keep a closer eye on his or her account activity. Some banks provide free debit cards, checks or ATM use to students and young adults. Once your child opens an account, make sure (s)he understands how to keep track of spending and banking fees. These include minimum deposit fees, overdraft charges, teller fees and charges to use an ATM not owned and operated by his or her bank.Have a ReserveOnce you’ve chosen a bank, set up an emergency fund. Things happen. It might be an unexpected and costly car repair or replacement of a blown computer hard drive. Dipping into an emergency fund is wiser than getting a loan or liquidating investments.How much money? Ideally, you want enough to cover a semester’s worth of living expenses. This includes rent or housing fees, textbooks, prepayment on next semester’s tuition, food, transportation and cell phone bills. If that much money is unrealistic, a few hundred cedis is a good start. Put the money in a separate interest-bearing account that’s easily accessible, such as a money-market fund. But be aware of minimum balance requirements.Here are some suggestions :• Start an emergency fund • Pay off credit card debt • Fund a savings and/or checking account • Pay ahead on tuition, textbooks, apartment deposit or campus housingGiving your child extra credit for schoolYou might be nervous about how your child will use a credit card while at high school? If you want your child to begin building credit or a card for emergencies, you will have to step in. However, if you co-sign your child’s card, you are jointly liable and your own credit might suffer if your child doesn’t pay the bill on time.Encourage your child to use a credit card wisely. Tell your child how interest payments add up, introduce budgeting and explain why going into debt is a bad idea. You might even share a few or your own past mistakes.Teach Your Young Kids EarlyWomen earn, on average, lower than men do, resulting in lower household incomes and savings, which makes them more vulnerable to financial emergencies. While it is important for women to be financially independent, many women still don’t learn to handle money until they’ve already developed bad money habits.Author Nancy Phillips encourages parents to start teaching financial literacy to girls as young as five years old. The Zela Wela Kids book series uses fun, hands-on activities to explain key concepts of money management to very young children. Children follow the main characters — twins Jack and Emma — as they learn step by step how to build their own banks. This fun activity teaches kids the concepts of giving, investing, saving and spending.Source: womensdigest.net