Posts Tagged ‘Raising Financially Literate Kids’

Raising Financially Literate Kids

Thursday, December 15th, 2011


For graduating seniors to effectively weigh the pros and cons of a college investment (a growing debate I blogged about yesterday) they need financial literacy. Unfortunately, our public school system is historically lacking in that department. Aside from adding up pictures of coins in workbooks, I don’t recall my schools teaching me anything about money at all. So if you’re a parent, take matters into your own hands: in the process of honing your own financial literacy skills as an adult, take the time to talk about money with your children.
 
Yesterday, Mint.com published a fascinating blog post about a survey they conducted of Mint readers – people like you who are proactive when it comes to their own financial education. Here are some results of this online survey “aimed at better understanding what [Mint readers’] approach was to money as kids and how they are teaching their own children.”
SURVEY RESULTS OF FINANCIALLY-SAVVY MINT READERS

- Nearly half stated they earned money before or in elementary school, primarily mowing lawns or babysitting.

- 9 in 10 respondents had paying jobs in high school, primarlily in mowing lawns, babysitting, retail and restaurants and mowing lawns.

- Majority of earnings in High Schoolwere mostly used for entertainment, eating out or car related expenses.

- Most were not very prepared to manage money after high school.

- Most were responsible for paying their way through college.

- Less than half were very prepared to manage money or to save after college.

- 1 in 3 ran into early credit card problems.

- More than half with children between the ages of 4 and 18 talk a lot about the value of money, living within their means, saving and helping the less fortunate.

- Most said schools do a better job teaching about anti-drug programs than about financial responsibility.

The blog goes on to suggest that more school are integrating financial literacy into the curriculum. As for what you can do to teach your kids yourself, involve your chidlren in conversations about money and invest in financial literacy games. From Disney’s The Great Piggy Bank Adventure to a whole host of otheronline financial literacy games endoresed by the Wasthing Department of Financial Institutions, there are plenty of options to explore.

Most importantly, when it comes to your kids’ financial education, 1) start early, 2) make it fun and 3) do it often.