Financial Literacy for Kids: 10 Effective Ways To Build Good Money Habits
Financial literacy means having the knowledge and skills to manage your money successfully and confidently.
Model Good Money Habits
Children constantly observe and learn from people and the world around them. Therefore, one of the best ways to instill financial literacy in kids is to model good money habits.
Teach Your Kids How To Save
One of the most basic money skills kids can learn is how to save money. For the youngest of kids, it works best to do this in a tangible, tactile way. A fun way to do that would be to pick out a piggy bank together, then deposit money they earn, find, or receive.
Teach Your Kids the Basics of Investing
Kids can start learning the basics of investing from a surprisingly young age.
Help Your Kids Start Investing
Eventually, your kids will be old enough to manage their investments. But you don't have to wait until then to put their money to work.
Go Shopping Together
One of the best ways to do that is to take them shopping with you. You can then weave in financial literacy lessons by showing them how you spend less on the things you need to buy.
Encourage Delayed Gratification
I firmly believe that being able to embrace delayed gratification is foundational to becoming successful with money.
Discuss Financial News and Current Events
Now more than ever, our kids are inundated with information from every direction. It's all too easy for them to be pulled into the latest fad, trend, or tactic.
Explain How Retirement Accounts Work
When your kids enter their teen years, that's a great time to teach them about retirement accounts. An ideal time would be when they start their first part-time job.
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