Easy Tips for Teaching Your Kids about Financial Literacy
No ones perfect and when it comes to personal finance, we’ve all made mistakes. To make sure your children are on the path to financial literacy we’ve compiled five things you and your family can do to ensure your children have the tools it takes to be financially literate adults.
Get financially savvy yourself: The more you learn, the more knowledge you can pass onto your children through your everyday conversations. Read up on how to optimize your personal finance and the underlying concepts behind financial decisions. Put what you learn into practice so you can be a good role model!
Involve your children in your finances: Your kids are watching every time you put down your credit card, why not let them see the full picture? It can be as simple as having them sit beside you as you pay bills, deposit savings or do taxes. These experiences give your children some familiarity with the financial activities and decisions they will need to master as adults.
Empower your children with their own money: Letting your children have their own money and decide how to spend it gives them an opportunity to practice making financial decisions. They will learn how to prioritize, budget, earn, and more!
Help your children find their own financial role models: Resources like Refinery29’s webseries Money Diaries, offer a great resource when diving headfirst into personal finance. These stories are a great way to take the magnifying glass off mom and dad and allow you and your children to take an objective look at someone’s real life financial decisions.
Our App: With Guardian Savings, kids have a virtual bank account that not only teaches core financial and banking concepts but also helps shape children’s behavior through incentives and feedback on the child’s spending decisions. There is a lot of potential for technology to coach children towards responsible behavior as they make real decisions about their savings. Eventually, Guardian Savings may become an AI-powered financial assistant that knows precisely when to scold and when to reward.
How are you helping your children grow into financially literate adults? Share your tips below and help the Guardian Savings community grow together.