As parents, you want the best for your kids. You teach your kids, you enroll them in the best schools, you teach them good hygiene, etc. These are all important things, but one that is often overlooked is financial literacy. Most parents rely on teachers and other types of mentors to help their children know more about financial literacy, but the truth is, parents play a more significant role in this.
Today, financial literacy in the US has been declining, and it’s likely to get worse. Don’t let your children struggle financially when they’re older because financial issues can be detrimental to their overall health.
Teaching Kids Financial Literacy
During a child’s early years, they can grasp the concept behind an allowance being put into an account. By early adolescence, you can teach your children by making them see an investment account, such as a college savings account. From this, they can see how valuable small investments are.
It’s easy to get frustrated when teaching your kids about financial literacy at first. That is why it’s important to manage your expectations. Your kids won’t likely seem interested in it at first, but they will once they see the investment grow into real money.
You can also use this as an opportunity to familiarize them with personal credit scores.
When your children reach high school, they will now start learning about compound interest. Take this as an opportunity to teach them how interest can work against them in the context of debt.
It’s important to keep in mind that this is also a time when kids want bigger items, such as a car. You can use their newfound interests to teach them more about finances.
Turning It into a Mindset
Remember, financial literacy isn’t only about math; instead, it’s a mindset. Teaching financial literacy is all about the psychology around money management and growing it. Mindset, good attitude, and a well-thought-out strategy will influence better wealth outcomes. Meanwhile, as parents, you can help your children see money only as a tool, but not something they should bend their knees for.
Don’t Rely Too Much on Schools
Although most public schools in the US require personal finance coursework, it remains to be very minimal. Additionally, many states have no curriculum in financial literacy, which is why the responsibility falls on parents.
There are now plenty of resources and tools you can use to teach financial literacy to your kids. With these, learning can be more interesting, and it will help you keep your children engaged, especially if they’re still young.
Get money apps for kids and other tools that you think will be helpful to make the learning process go as smoothly as possible.
In a Nutshell
As parents, don’t rely too much on schools to teach your kids about financial literacy. Remember, a huge chunk of your child’s financial literacy will come from you, which is why you need to step up and take the time to teach your kids about financial literacy. You are the best person to teach your kids about it!
If you’re looking for money apps for kids you can use, check out Kiddie Kredit. Our mobile app is designed to educate kids on the credit system by completing chores. Download it today!