Start Young When It Comes to Financial Literacy When it comes to financial literacy, it’s never too early to get kids started.In the United States, the month of April is designated as Financial Literacy Month. What many will ask about is when is africa Financial literacy date – ? This is a time to bring attention to the importance of financial education, particularly in schools for younger children and adolescents.
Start Young When It Comes to Financial Literacy
As the mother of two girls in their teenage years, I can certainly speak to the significance of the message that you are trying to convey to today’s youth.
Considering that I work in the field that I do, I suppose it shouldn’t come as a surprise to anyone that I got my kids started young on developing healthy financial habits. My daughters will always have financial self-assurance, no matter what life throws at them. Because of this, they ought to have a good handle on their financial situation as well.
The following are some of the most important approaches that I’ve taken toward teaching my children about financial literacy.
Talk about money in an open way.
I didn’t know anything about my parents’ money when I was growing up, and that has affected how I handle money now that I’m an adult.
I make sure to be very open with my daughters about money. They know how much money I make, how much is in savings, and how much is in our retirement plan. Some families might find that strange, but I want my daughters to be strong and independent. I’m the main person in my family who brings in money, and I want my kids to see how to be financially stable and secure on their own.
Every day involves money. So, make sure to talk about it every day. The more it feels like a taboo, the scarier it is, and before you know it, your kids have missed out on years of easy conversations about money that could have helped them get ready for adulthood.
The Practice of Delaying Satisfaction is Acceptable
It’s always been expected of me to save money, and I tend to do so regularly. My tween and teen girls have been aware of the scarcity of monetary resources from an early age.
Truth be said, this didn’t exactly win over audiences all the time. Imagine being a kindergartner whose mom has split the Christmas budget between buying you material gifts and putting money away for you. At age five, it loses some of its luster. Thankfully, they’ve outgrown this kind of elementary school comparison and are learning the importance of putting aside funds for future endeavors like travel or further education.
To the point where I had to reevaluate my approach, my 14-year-old daughter has taken her penchant for saving to new heights. When my daughters were little, I began saving money in 529 plans for them to use later on. If they made a contribution, I would increase it by a factor of 10 so they could realize the true value of saving. My daughter knows that if she deposits $1, I’ll match it with $10. This strategy was successful up until around age 10, after which I found myself having to match their donations instead.
As a Matter of Fact Regarding Life Insurance
My husband and I have discussed with our daughters the contents of our life insurance policies, including the dollar amount, where the policies are kept, and who will care for them in the event that either of us should pass away. In addition, ever since the epidemic started, both of my children have been protected by their very own permanent life insurance policy.
It is only natural for children to have some inquiries in response to this, such as “Is it because you believe I’m going to die?” I gave them the assurance that it was not about the death benefit but rather about making sure that they could be insured for the rest of their life. In the same way that it is with other aspects of my finances, it is about protecting them in every manner that I can.
The encouraging news is that individuals are finding it less difficult to discuss life insurance. According to the research titled “Life’s New Appreciations” that was conducted by Life Happens, there was a 9% drop in 2021 compared to 2020 for the topic of life insurance to be avoided at the dinner table. In spite of this, it appears that life insurance is still an aspect of financial literacy that is frequently neglected for children.
I completely understand how awkward and weighty it may be to discuss morbid topics with children and teenagers. On the other hand, I like to think of life insurance as a way to make that important talk a little bit more upbeat. It can be reassuring for both the parent and the child to know that their loved ones will be taken care of if they have life insurance because it is a way to ensure that their loved ones are protected.
It is a responsibility that every parent has for their offspring to educate them. In addition to this, it is important to teach kids about financial matters. As a parent, you have the ability to influence many aspects of your child’s life, including the financial circumstances he or she faces.
The following are some of my favorite resources for teaching youngsters about money management: