A study conducted by the Financial Industry Regulatory Authority (FINRA) highlights the importance of financial education.
Importance of teaching kids to be smart about money
Parents are responsible for teaching their kids the value of money. By explaining the cost of items to your kid, for example, you will also help him appreciate the value of money and begin to demand less; become more appreciative of gifts or presents they unexpectedly receive and lead a happier, more stress-free life in the future.
- Talking about money shouldn’t be taboo. For a long time, families were often reluctant to talk about wealth, money, and other financial matters. However, today’s parents are encouraged to be comfortable conversing with their kids about money and be open to discussing family finances.
- Kids can learn the value of money from a young age. Encourage your kids to participate in aiming for some financial goals as a family and going for it. It could be saving up for a new car. Discuss with them the need to sacrifice the non-essentials to be able to save up for family goals.
- Guide them in the future. It’s not enough that you motivate your kids to plan for future activities. Teaching them to be financially smart will prepare and help them avoid financial debt and bankruptcy in the future.
Introducing financial literacy from a young age comes with a variety of benefits. Read more about those benefits and how to best teach kids about money by clicking here.