Financial Literacy for Children-Start them young

As parents, we often teach our kids good morals, our primary values and the importance of good education.

I wonder why financial literacy is often left out.

I asked my 5-year-old daughter a question this morning, "I asked what is money?" she answered "money is for buying stuff". I am sure that any kid her age will probably give the same response. 

Most kids understand the basics of spending because we do our best as parents to buy them most of the things that they ask for. Do they understand the basic principles of saving?  I think most adults shy away from having conversations about money with kids because of their own money management skills or is it lack of confidence due to their own spending habit.  

Adults have experience and perspective that kids do not have when it comes to money management. Therefore, it is very important to start having conversations with kids. If kids are not taught about money management at home they will learn it from their friends. I bet most kids believe that the children of rich parents are born lucky.  if kids associate luck with wealth  how responsible will they be with money?  It is very important that we explain to them from a very young age that people work hard to get money and once you have the money, you have to also make the right decisions with the money in order to get rich. 

Teaching children about money will help them understand the relationship between working to earn money, spending and saving money.  Kids need to understand the value of money, and I believe financial literacy will give them that foundation. 

You can start this process by teaching the little ones how to count coins. The next time you go grocery shopping, let your older kids hold the shopping list and make sure they keep to the list, then explain why they have to keep to the budget.

If you have any question, email me at margmortgages@gmail.com or call me on 780 901 8060