As parents, we want to do everything we can to equip our children for life in the real world. But while the schools are doing a good job teaching our children things and disciplines that will prepare them for college and the workplace, there’s one lesson that many schools in the country fail to cover: financial literacy.
As a result, many children grow up to be well-versed in academics – even in math, economics, and statistics; and yet, they have no idea how to grow their money and secure their financial future.
Financial literacy is the ability to effectively manage resources to ensure a lifetime of financial well-being. And since this topic is hardly taught at schools, it is critical for parents to get involved in their children’s financial education.
If you want your kids to grow into financially responsible adults, instill in them good money habits while they’re young. The things that people learn and the habits that they develop at an early age are likely to stay with them for a lifetime.
So, how do you introduce money and financial education to young children? Start by integrating money lessons into their daily lives. Whenever your child asks you to buy something, ask them if it’s a need or a want. If it’s a want, encourage them to save for it or earn the amount they need by doing extra kids chores at home.
You don’t raise financially-literate children overnight. Financial education is a process. And when talking to young children about money, the most important thing is that they learn and understand the basics. This includes good money practices such as saving, giving, responsible spending, and the fundamentals of investing, which are explained further by this infographic.
Conversations about money may feel awkward at first, but they are necessary in empowering children to ask questions and explore money management options that will allow them to develop a better financial sense.
Money is a necessary commodity. And, whether you admit it or not, it’s also a social issue that impacts people’s values, choices, relationships, and self-esteem. By taking an active role in your kids’ financial education, you’re setting them up for success in life. Children who grow up to become financially independent adults live happier, less stressful lives.
About the Author:
Samantha Green is the Content Marketing Strategist for the MCA award-winning app, BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them