Money is taboo and is something not to be discussed. People don’t like discussing how much they make, not even to their kids. Parents will talk all day long about the birds and the bees, doing homework and chores, but not how to responsibly handle their money.
Proper financial education includes a variety of aspects from budgeting to planning, earning and saving.
To that point ask a kid how much a car cost and they’ll have no idea, nor do they know how much certain jobs will make them – which makes an emphasis on doing well in school that much more relevant. On top of that, most people don’t learn about financial literacy in school. Why is that? Our children are set up to fail before they’re even adults.
Teens believe that as adults they will earn an average salary of $145,000. In reality, adults with a bachelor’s degree earned an average of $54,756 in 2011.
I taught a group of middle school kids about the need to build credit and at the end they were able to correctly answer how many credit cards the perfect credit profile has, yet most adults can’t.
Successful parents want their kids to be well-adjusted and advantaged, but they don’t want them to lack ambition – Make sure they understand what it took to make that money, the hustle, the drive, the education, the years of work and that it will take that same effort for them to keep the money and build on it for their kids
For allowances, deposit into an online account that they can access and see. That way they can determine if they have enough money for a toy, game, etc. and if it’s really worth it. Better than them asking you for money constantly. A pre-loaded card also works.
Consider giving kids 3 buckets to save into:
- Short-term spending
- Big ticket items
- A charitable fund (ex., saving the environment)
Below are some resources for games and activities.
Games that teach kids about money in a fun way: http://www.dfi.wa.gov/financial-education/games-kids
5 complimentary online workshops to teach kids (and adults of all ages about money): https://www.financialeducatorscouncil.org/financial-literacy-lesson-plans/
A good site to help you determine rough overview of what to teach your kids that is age appropriate. By 4th grade, they should be able to handle concepts like budgeting: https://www.mortgagecalculator.biz/resources/financial-literacy-lesson-plans.php
For the kids with cell phones and iPads, here are 7 apps to teach them the basic principles: http://money.usnews.com/money/personal-finance/articles/2015/06/23/7-apps-to-teach-your-kids-personal-finance-skills
14 Lesson Plans For Teaching Financial Literacy: Http://Www.Teachthought.Com/Pedagogy/Literacy/14-Lesson-Plans-Teaching-Financial-Literacy/
Tools For Educators: Http://Www.Nea.Org/Tools/Lessons/Resources-For-Teaching-Financial-Literacy.Html
Online Account That Allows Kids To Earn Money For Chores And Then Spend It On Approved Items, Even Allows For Charitable Donations For Things They Care About Https://Www.Youtube.Com/Watch?V=F361k6p6mGk&App=Desktop
Children’s Books That Teach Money Concepts: Http://Www.Extension.Umn.Edu/Family/Personal-Finance/Youth-And-Money/Adult-Resources/Elementary-School/Using-Childrens-Literature-To-Teach-Financial-Literacy/