It’s unfortunate the current educational system doesn’t pay much attention to teaching kids about money. Some schools may offer special courses on financial literacy, but that’s pretty much it. Kids must learn money skills in any way they can!
Why Kids Need To Learn Money Skills Now
We can’t diminish the value of educating our children in mathematics, science, and other subjects in their curriculum. However, it can be a bit frustrating that financial literacy is not a priority! It isn’t like we don’t know money management is something our kids really need to learn about, even master.
Why the need to learn financial literacy?
Kids need to be financially literate simply because handling money is a crucial part of everyday life. Everyone needs to understand the concept of money and how it works. While the more complicated aspects of handling finances won’t come until they become adults themselves, it’s never too early to teach our children about finances.
When kids learn about basic financial concepts such as money and savings at an early age, it would be easier for them to grasp more complex ones when they grow older, such as:
Modern Financial Literacy Tools
Then again, when you think about it, modern financial literacy tools like a kids debit card are already helping parents teach their children the fundamentals of more complex financial concepts at a young age. To take advantage of such a tool, parents would do well to tie in chores and allowances and teach their kids financial literacy in the process. Using a debit card for kids will help them become more familiar with the concept of banking and saving money, among other things.
When kids earn their allowance through chores, parents can simply transfer money to their children’s debit card instead of giving them cash. Their kids will then be able to savor the idea of monitoring their earnings through electronic statements and online banking. Teaching kids financial literacy also involves educating them about spending.
Check out the infographic below to see how kids should spend their money.
About the Writer: Samantha Green is the Content Marketing Strategist for the MCA award-winning app, BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.