How Can Parents Help Their Kids Learn Financial Literacy Skills?

Start early: It’s never too early to start teaching kids about money. Young children can learn basic saving and spending concepts and older teens can put them into action once they are earning money.

Set a good example: Parents should model good financial habits, such as saving, budgeting and avoiding debt. Show your teens how you budget, balance your checkbook and track expenses.

Give an allowance: Giving kids an allowance is a great way to teach them about money management. Encourage them to save a portion of their allowance. Experts recommend 10 to 20 percent. Also, help your teen open a checking or savings account. Many banks and credit unions offer youth savings and checking accounts.

Involve kids in financial decisions: When making financial decisions, involve kids in the process. This will help them understand how financial decisions are made and why they are important.

Use online resources: There are many online resources available for teaching kids about money, such as games and interactive activities. Invesco QQQ offers a free online financial literacy video game called How Not to Suck at Money. Find it at hntsam.com. Bonzai.com also offers a variety of interactive and game oriented financial literacy content.

While the new Florida bill requiring financial literacy education for high school students is a step in the right direction, parents also play an important role in helping their kids develop financial literacy skills. By starting early and modeling good financial habits, parents can help their kids achieve financial independence and make informed financial decisions throughout their lives.