What about Reading, Riting, Rithmetic and Return on Investment?!?!
We believe that financial education is not just about money. It’s also about our sense of well-being, creating equal opportunities, even strengthening our relationships. So, though we work predominately with adults, we believe that it’s important to share with the next generation our own money management practices—from household budgeting to saving to investing. And – studies show that their lives will be richer on many levels https://www.schwabmoneywise.com/moneywise-america.
Why is it important for our kids to be financially literate?
- Kids need accurate information. Kids are influenced by the internet, their peers and adults with poor money-management skills. Not teaching your kids about money today can create inaccurate assumptions and disastrous habits in the future.
- Tweens and Teens are easily confused by needs versus wants. Understanding how to balance needs and wants before going into debt is a life-long lesson.
- Money doesn’t grow on trees. Giving our kids the opportunity to work and earn money for their efforts while also, showing them how to save and invest some of the money goes a long way to teaching the value of money.
You don’t have to be a financial expert to help educate your kids. Here are a few things to keep in mind:
- Don’t lecture. Instead, use stories and share your experiences. As much as you think appropriate, share your family’s situation, including your budget, savings, insurance and investments. Take money out of the closet.
- Encourage your teen’s questions. Nothing should be off the table.
- Walk the talk. Kids watch what you say and do. Often the unspoken messages are the most powerful of all.
- Make concepts and examples relevant to their lives. Having a savings or investing account, an allowance, or making them an authorized user on a credit card all are ways to help your teen learn by doing.
- Be careful with implicit and explicit biases when talking to girls. Help your daughter become as strong as any of her male counterparts by giving her the same skills and knowledge to succeed.
- Discuss your values. So much of money management has to do with our personal priorities, so show your teen how they can connect the two. Fancy car or college fund? Expensive vacation or helping an aging parent? Include your teen in these important decisions.
- Don’t be afraid to say ‘I don’t know.’ Seek out the answer together!
Some additional resources for how to raise financially literate kids are included here:
https://www.schwabmoneywise.com/content/how-can-we-boost-teens-financial-literacy
https://fastlane-education.org/
https://www.schwabmoneywise.com/teaching-kids/boys-girls-clubs