Unleashing Financial Wisdom: Guiding Your Children Towards Money Mastery
Let’s Talk Money with Kids
A large percentage of adult Americans admit they need help managing their finances, according to a Consumer Financial Literacy Survey. It’s surprising how many of us are left to figure out financial management on our own. This often leads us to consult finance books, magazines, or blogs for guidance.
Why don’t we learn about this crucial life skill in school? Unsurprisingly, there’s not enough qualified teachers or agreement over what a finance course should cover. But could do something to change this. It’s time to dramatically change the way the next generation handles money.
Leading by Example
Our children learn a lot from us, whether we’re aware of it or not. It’s important that we set a good financial example. That includes admitting our past financial mistakes and using them as teachable moments.
If you’re currently in debt, don’t feel ashamed. Instead, let your kids see you working hard to clear your debt, that way they’ll understand the gravity of financial obligations and aim to steer clear of debt in the future. Even as you aim for financial stability, it’s crucial to let your children witness the journey.
Explaining Your Finances
We’re often told that money matters should be kept private, but doing so robs our children the chance to learn about finances. Of course, you should decide how much information to share, but completely shunning them won’t help either.
Take Advantage of Opportunities to Teach
Teachable moments are more common than you think. For example, when you go to a bank, tell your kids why you’re there. Teach them how to open an account or withdraw money. Making these simple activities learning moments can help them understand how finances work.
Shopping trips can also be educational. Depending on your shopping habits, they can teach about impulse buying, sticking to a budget, or handling disappointments. These real-life experiences can be fantastic learning tools.
Making the Internet a Teacher
Nowadays, the internet is a treasure trove of resources that can help teach your children about money. Resources like CFPB, Biz Kids, and Freedom Sprout offer lessons, toolkits, and games that are both fun and informative. YouTube can also be quite handy when teaching about specific financial concepts.
Fun with Money Toys and Games
Toys and games are also a great way to learn about money. You have options besides Monopoly. Games such as CashCrunch Junior, CashCrunch 101, CASHFLOW for Kids, and Payday are designed to foster financial understanding in a fun environment.
Admit When You Don’t Know
Finally, don’t pretend to have all the answers. If you don’t know something about finance, it’s a perfect opportunity to learn together with your child. This encourages a learning culture and shows them it’s okay not to know everything. Embrace humility and become a learning partner to your child.
This is not just about managing money; it’s about fostering a better relationship with money and setting the next generation up for financial success.
