Why do we need to teach our kids about money? Research and statistics paint a pretty grim picture of our culture's present situation:
- Only 23% of kids surveyed indicated that they talk to their parents frequently about money. (Money Confident Kids)
- Only 16% of U.S. high school students are required to take a personal finance course. (Next Gen Personal Finance)
- 84% of respondents agreed that high school didn’t prepare them to handle their money. (NitroCollege.com)
- Most youths are financially illiterate. As a matter of fact, a recent Consumer Reports survey revealed that 28 percent of students did not know that credit cards are a form of borrowing, and 40 percent did not know that banks charge interest on loans. (Focus on the Family)
- We teach our children to wear seat belts. Schools invest in programs aimed at helping kids practice smart internet habits. But few are talking about the dangers of too much debt or the blessing that is compound interest. (InvestmentNews)
- Advertisers and credit card companies are targeting children and teens. These professionals realize that kids have more money and spending influence than at any time in recent memory. (Focus on the Family)
From the various information provided above, it is obvious that we as parents need to be involved and teach our children money matters at home. Unfortunately, many parents lack confidence in their own financial literacy. This blog series, "Teaching Kids about Money," will perhaps motivate you to learn at the same time the things you are teaching your kids. I will also provide you resources along the way if you want to dig deeper to increase your own financial self-confidence.
There’s an old Native American proverb that says, “Tell me, and I’ll forget. Show me, and I may not remember. Involve me, and I’ll understand.” Our kids are going to imitate our habits of handling money. Don’t just make them work; let them see you working. Better yet, have them work alongside you. Let them know that work is how money is earned. (Dave Ramsey)
Following blogs will discuss habits you can begin to instill in your child’s daily behavior. Dave Ramsey says repeatedly “Personal finance is 80% behavior. It's only 20% head knowledge.” We will explore fun ways to learn these behaviors.
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