The majority of adults I speak with have a similar experience to share with me about their lack of education on money throughout their school years. After 13 years in school, they graduated with a passing grade on Pythagoras’ Theory but feeling completely in the dark on how to file their taxes, invest in the stock market and choose a mortgage.
Every once in a while I hear about a wonderful career education or math teacher who clearly had a passion for financial literacy and taught lessons on these day-to-day adult tasks—those teachers are worth their weight in gold for the difference they made!
For parents raising children in this generation, we have some good news in that there have been valuable changes to our current curriculum which include many of these areas. In order to graduate high school, students will cover personal budgets, compound interest and credit card amongst others.
However, we all know that learning starts at home. There are many topics that you can broach to provide your child with a greater understanding than what they will get from their classroom alone. Here are some age-appropriate ideas:
Preschool Aged:
1. Sharing and donating toys teach generosity
2. Putting away toys before a treat teaches responsibility and work ethic
3. Saving birthday money to spend on a favorite toy
Elementary Aged:
1. Begin allowance using a clear jar “piggy bank” so they can see how much they have saved
2. Start long term savings goals
3. Track savings with a sticker chart or coloring sheet
Middle School Aged:
1. Open bank accounts and teach how to use it online safely
2. Discuss their favorite brands and show their stock market charts
3. Choose a chore-based or automatic allowance method and discuss a budget for spending and saving
High School Aged:
(Change the numbers for privacy if that is important to you.)
1. Show your paystub and discuss income and deductions
2. Explain your investment statements
3. Set guidelines for saving a portion of their income (I suggest at least 50%)
4. Discuss credit cards and teach how interest works
These suggestions are only meant as inspiration for all the great ideas you’ll come up with on your own. Day to day activities will give you many more topics to cover if you are wanting to teach your kids what you wish you had been taught in school.
