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4 Ways to Improve Your Kids' Financial Literacy

4 Ways to Improve Your Kids' Financial Literacy

| April 11, 2021

Helping our kids develop financial literacy is one of the most important things we can do for them!

If we don’t teach them financial concepts and provide them with the opportunity to learn from their own financial experiences from an early age, it can be difficult for them to develop the skills and habits that lead to making smart financial decisions later in life (including growing and/or maintaining generational wealth).

April is Financial Literacy Month – so we are sharing 4 Simple Ways to Improve Your Kids’ Financial Literacy.

These suggestions will help your kids develop in ways that will serve them for the rest of their lives, and for generations to come! 

1. Talk About Money!

Explaining important financial concepts such as saving and investing, budgeting, and managing credit should be part of an on-going conversation. Whether you schedule monthly check-ins to talk about money or discuss money-making decisions as you go shopping or pay bills, the key is to keep the conversation going.

Simple conversations go a long way toward informing kids how to make smart financial moves.

2. Create Firsthand Experiences

Take opportunities in your daily life to model how to make smart financial decisions. This can include creating opportunities for kids to earn money through chores; setting up a bank account for them and allow them to help manage the records; help them get started with investing by opening a custodial account; or show them the value of giving by having them find charitable organizations that interest them and decide how to support or volunteer.

Providing concrete examples and firsthand experiences will reinforce good financial habits!

3. Use Tools and Resources

You don’t need to be an expert on financial topics. There are many resources you can use for great age-appropriate advice. There are many books and podcasts designed for children of all ages to start learning about money!

One of our favorite books is: “The Infographic Guide to Personal Finance” by Elisabeth Lariviere and Michele Cagan. We’ve also previously posted about the “Million Bazillion” podcast on which is designed for kids to helps dollars make more sense!

4. Meet with Us! 

We think it is important to host Financial Literacy & Planning Sessions with our clients’ young adult children and facilitate family meetings to accomplish multi-generational wealth objectives.

Whether you’d like help communicating your financial values, the mission of your legacy plan, or want to make sure your children are well equipped to handle their inheritance, this can be accomplished in these family meetings.