Financial Literacy For Kids
The NFEC provides comprehensive financial literacy resources for those seeking to improve the financial capability of kids from PK through Junior High. For those seeking material for high school or college age youth, visit the financial literacy for student’s page.
The NFECs’ financial literacy for kids programs delivers the key foundation knowledge that is necessary to develop good money management habits. The coursework has been designed by a team of educators, financial education experts and financial professionals. The NFEC has been successful in creating personal finance programs that meets educational standards while providing practical instruction to help our children prepare for the financial real world.
Providing financial literacy for kids before they move out on their own is essential to ensure their security and well being. Most major studies on the topic concur with the National Financial Educators Council’s research; the average children fail even the most basic financial literacy tests. This documented lack of knowledge on personal financial matters among our youth can plaque them well into the future.
Many parents and educators are surprised to discover that the majority of children today never receive money management coursework during any level of schooling, including college. Most college graduates have spent 16 years of schooling that will help them earn more money, yet no time is spent teaching them fundamental personal finance lessons. Children’s financial education at home is no better. Reports show that most parents don’t talk to their kids about money because they don’t feel confident sharing personal finance lessons with them. Consequently, the vast majority of kids enter the real world without ever learning about money in school or at home.
To help today’s youth avoid a future where they are worried about their financial security, it is essential that kids are taught about money. Professional money management programs for kids help them build essential lessons that can have lasting monetary and personal benefits. Below are tips that will help you start to share financial literacy lessons with children.
Once kids are old enough to count, typically around 2 year old, parents should start to teach kids about money. The NFEC’s report, “Financial Literacy Programs for Kids” provides educators and parent’s insight on how to begin teaching children about personal financial matters. This guide provides specific details on how to share monetary lessons with young children up to around age 7.
Ages 8 to 14 are critical times in the development of children’s financial behavior. During these years, they form habits on saving and spending that can last well into the future. It is essential that parents are actively involved in helping their children learn about financial matters. One of the best ways is through proper allowance management. Paying children for work they do and having them spend their own money when they want to make purchases. Each purchase and allowance payday can be a great time to teach kids about money.
By the time children grow up to reach high school or college-age it becomes critical they are taught about money. During these years, a professional personal finance course is necessary to ensure they have developed the skills needed to successfully navigate the financial realities they will face when they are on their own.
Providing financial literacy for kids is of critical importance. The lessons learned can benefit them in perpetuity and greatly improve many aspects of their life.
Financial Literacy for Kids Prepares Them for College
The time has arrived—your child is getting ready to graduate from high school and soon your nest will be empty. As a parent, you have many responsibilities to help prepare your young student for the challenges of college. Perhaps the biggest one is to teach them how to spend (or how not to spend) their money. A solid foundation of financial literacy for kids appropriately begins at home.
Few college students are completely independent. That means their support can place a heavy burden on their parents, a burden which can last a long time. Recent surveys indicate that as many as 70% of college graduates are likely to move back home with their parents after graduation. But providing a good financial education for kids long before they head off to university can help relieve some of that burden. Young people can learn the repercussions of their financial decisions and begin developing positive money habits from an early age.
An unfortunate truth today is that college preparation courses presented in high school do not teach kids about money. College-bound youth need to learn how to resist the financial pressures of college life, allocate resources responsibly, and spend their limited funds in a mature, healthy manner. In the absence of adequate personal finance training in school, parents need to step in. One of the first things a parent can do is model good money habits themselves. Kids gain most of their money knowledge from you—so if you show them what mature spending looks like, they’re likely to pick up that habit.
To help you build financial literacy in your student and prepare him or her for the real world, some programs are currently available. Responsible parents can enroll their children in financial literacy programs—often called money camps—which impart positive money management skills. Many such programs also make resources available complimentary on their websites. If the time for your child to go off to college is near, it’s time for you to step up and make sure he or she is prepared.
Financial Literacy Kids – Talk for Families
Families all around the country are beginning to recognize the vital importance of teaching children how to effectively manage money. Indeed, a financial responsibility movement is sweeping the nation as people strive to cope with the recent economic slowdown. Yet in the realm of financial literacy kids may be at a disadvantage, especially if their parents did not receive personal finance training when they were young. Too many people in the U.S. still live paycheck to paycheck—a risky financial situation regardless of income level.
Giving kids financial education is one of the best ways to prepare them for real-world challenges. The National Financial Educators Council (NFEC) has designed a set of ten essential money talks parents should have with their children. The first of these talks focuses on goal-setting. Setting realistic goals and making a plan to achieve them builds a viable framework for effective money handling.
The goal-setting talk sets the stage for teaching financial literacy to kids. The NFEC suggests that parents first share some of the goals they had when they were young, both the serious ones and the ones that seem silly now. Then they suggest asking the child to share some of his or her goals. Does she want to be a dancer? Does he want to have children of his own someday? Parents should encourage their kids to have dreams, and let them dream big.
The next step in this talk is to set a family financial goal. For example, the goal might be to reduce a utility bill by half. Plan to set aside the money you save for a celebration, like going out for pizza or a weekend at the beach.
This family money talk is one example of the comprehensive financial literacy lesson plans for kids that the NFEC has developed. This social enterprise organization has financial literacy programs for all ages and walks of life. Read the rest of the family money talks and learn more by contacting them.