More Easy Ways to Teach Financial Literacy at Home
Most Americans are unaware of how low financial literacy numbers are in our country. As previously mentioned, young adults around the world rank higher than those in the U.S. when scored in their knowledge about personal finance. While some states have legislation that require the teaching of finance in schools, parents can help to set the stage for the lessons to come. A past blog of mine discussed some tips for teaching financial literacy at home but there is no such thing as too much education in personal finance. Here are some more ways that families can work together at home to help increase their child’s financial literacy.
The Value of Money
When it comes to teaching kids about money and personal finance it is often best practice to start out with the basics. Teaching your children the fundamentals of money and its worth is where many choose to begin. Showing them the value of various goods and services is something that parents can easily do in their everyday life. While you’re out at the grocery store, breaking down what each item costs and their importance teaches not only value but spending habits.
One of the most common areas where young adults struggle financially is savings. Instilling into your child’s mind how crucial saving is for the future is a key to financial literacy. For younger children, setting a savings goals early on can make a lasting impact down the line. As adults we are saving for retirement and our child’s future but for them saving up for a new toy or game is an attainable goal. Explaining that while they could spend the money they earned from chores now, they could also save it up for a month or two to splurge on a larger ticket item. In addition to teaching about the concept of saving, having a savings storage system in place is also a lesson to be taught. It could be as simple as a piggy bank or jar that they keep their earning in. However, for preteens and teenagers, helping them open their own bank account can teach longer life lessons. Taking them with you to visit your preferred banking institution is a great way for them to see first-hand the efforts that go into managing money
When it comes to financial literacy, educating the youth around us is so important to their future. The value of money and saving habits can be taught at such young ages and there is only room to grow from there. As we wait for more states to require personal finance lessons in the curriculum we must continue to teach lessons to those who will come after us.