All parents want their kids to grow up healthy. But most of the time that discussion focuses on getting them to eat more vegetables and spend less time in front of screens. You also need to think about kids’ well-being in terms of their financial health.
In fact, one in four parents don’t feel qualified to teach their kids about money because they themselves don’t feel like they’ve been good enough stewards of their own finances, according to a survey by the investment firm T. Rowe Price. And two-thirds of parents worry about setting a good financial example for their children.
Fewer and fewer workplaces offer guaranteed pensions, making saving for retirement the responsibility of the individual. Yet mobile technology and targeted online ads are making shopping instantaneous, increasing the likelihood of young people finding themselves in personal debt and ever-ballooning student debt.
On top of all that, only 17 states require a high-school course in personal finance. Perhaps that’s why 40% of young adults who live on their own still depend on their parents for money.
If you’re unsure how to teach your kids about money, you can start by talking to them. Look for teachable moments and bring the topic up naturally. Solicit their advice at the grocery store about what’s the best deal, and introduce the concept of money early with an allowance if you can. Allow them to spend some of the money they earn, but also talk to them about the importance of giving and saving.
You can also lean on your credit union for help. Open a youth savings account and find out about the educational resources your credit union offers. A fun place to start is the Zogo App. It’s a gamified financial literacy app that rewards kids 12+ for learning about finances with gift cards! Learn more about Zogo here: https://www.mypscu.com/financial-education-app/ It could be one of the first steps your kids take towards a stronger, brighter future.