Educating the Next Generation of Investors, C O N S U M E R S , A N D B O R R OW E R S ( YO U R K I D S ! ) BY DY L A N R O C H E “M O M! DA D ! CAN I H AVE SOM E M ONEY ?” Whether they’re as young as kindergarten or old enough to be preparing for college, some kids seem to think—as the saying goes—that money grows on trees.
seem to recognize this fact. We tend to assume that people will somehow learn about money on their own. There needs to be a paradigm shift when it comes to financial literacy.” Taking steps to ensure that kids are well-versed in finances will set them up to being able to build wealth, be prepared for emergencies, and stay out of debt.
But understanding the value of a dollar, along with responsible practices like budgeting, saving, and investing, are all lessons that begin at home, where they’re taught by parents or other adult role models. And these lessons are important because, as with other life skills, children who learn to be responsible with money when they are young tend to keep those habits as they get older.
“But why can’t kids just be kids?” some parents might think. Although it’s true that not every aspect of financial literacy will be appropriate for young children, even simple lessons can make a big difference in a young person’s relationship with money.
It’s for these reasons that the Youth Financial Literacy Foundation encourages parents to teach financial literacy starting from a young age. “Financial education should be a continuous process, right from childhood to adulthood,” the organization explains. “Unfortunately, not even our learning institutions
“As children grow up, their emotions toward money management also are maturing,” explains the National Financial Educators Council. “Efforts at building financial literacy for children should help kids become self-reliant and self-assured when handling finances.”
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What’s Up? West County | January/February 2021 | whatsupmag.com
