Financial literacy for kids : important lessons

June 26, 2020

We all see the importance of financial skills in navigating life, but it’s surprising that schools don’t teach about money for kids. As parents, however, we can teach our children important lessons about financial literacy for kids  – and we should.

 

Financial literacy for kids
As parents, we can teach our children important financial lessons / ph: Pexels@Julia M Cameron

 

In the US, look at the mortgage crisis and how many families have lost their homes – 3.9 million homes have been foreclosed. Look at the amount of money – 1.1 trillion dollars that we owe in student debt. The figure – $845 billion – we owe credit card debt. It is clear that adults do not know much about money. To help the next generation avoid the mistakes of their predecessors, and to have a financially appropriate life, financial literacy for kids must be given to children” said Beth Kobliner, author of the bestseller of The New York Times “Get a Financial Life” and is a member of the Presidential Advisory Council on Financial Capabilities, who leads the creation of the “Money as You Grow” program, which is equipped with pre-paid suitable lessons for ages for children.

Kobliner says that children under the age of three can grasp financial concepts like savings and spending. A report by researchers at Cambridge University commissioned by the UK’s Money Advisory Service revealed that children’s money habits were formed at age 7 so that teaching preschoolers about money is a “should”. When it comes to teaching money for kids, there’s no doubt that it’s one of the few skills that can help them live better, enjoy greater freedom, more control over how they spend their time and afford. Security may not exist. A grown-up adult with early money management skills has a better chance of avoiding poverty, escaping financial stress, and even ending one of the secretive millionaires like a janitor. Ronald Read, who left $8,000,000 + in assets after executives started digging through the safe deposit box of the recent minimum wage earners, who collected stock during His life as a baseball card or decorative plate.

 

#Teach children to save 

 

Start with the most important part in giving money activities for kids is to teach children to save

 

Several generations ago, when Napoleon Hill, the legendary author of Think and Grow Rich, wrote his biography of America’s most successful men, he spent a lot of time on the habit of saving; The ability to spend less than you earn under almost all conditions so you have a surplus. Knowing how to create that surplus is the most important foundation of building wealth. That surplus is what you include in your 401 (k) plan. That surplus is how you sponsor your Roth IRA. That surplus is what serves as a down payment on your home or when you make your first real estate investment. That surplus is how you buy stock or buy bonds.

 

#Teaching kids to count money 

 

Focus does not teach money for kids, but basic math. It sounds counterintuitive, but research shows that’s the best way

 

Giving financial literacy for kids should include money games for kids as counting money games.

The Wall Street Journal ran an excellent work earlier this year on the details of research showing that financial literacy is less correlated with financial success than mastering basic mathematical concepts. At its core, this makes sense because money really is nothing but addition, subtraction, multiplication, and division.

 

#Teaching money for kids should include charity activities

 

Incorporating charity into money activities for kids  to help them learn about money that money is not just about servicing his/her own needs

It’s easy to respect money when you find that wasting it can lead to a better life for others which will be meaningful money activities for kids.

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