Financial Literacy & Your Kids

13 Aug Financial Literacy & Your Kids

Kids playing the Millionaire Maker GameIt’s back to school time already. This was an exciting summer for all of us here at Live Out Loud. I hope you enjoyed yourselves as well!

In the beginning of the summer I talked about getting your kids more involved in conversations about money and to start teaching them how to create their own cash machines.

Have you started your weekly family money meetings? It would be great to hear about your experiences. Please post a comment below so we can support each other in our efforts to educate our kids about money. I believe as parents we have an absolute duty to teach our children to be financially literate, as well as financially creative.

If you haven’t had a chance to make time for this yet, I’d like to share with you some alarming statistics.

A study conducted by Capitol One Finance, not too long ago, reported that 87 percent of college students and 90 percent of high school students rely on their parents for financial guidance.

In the Jump$tart Coalition survey, only 26% of 13 to 21 year-olds reported that their parents actively taught them how to manage money.

That means that less than a third of adolescents and young adults said they learned how to manage money from their parents and almost all of them reported relying on mom and dad for guidance. This is just mind-boggling!

What does that say to families everywhere?

Plain and simple, there is a serious lack of education for kids when it comes to managing and creating money. And we haven’t even begun to scratch the surface of wealth building. It’s time to close this gap for our children. Start actively including your kids in conversations about money. Set aside time for that weekly family money meeting.

“The financial preparedness of our nation’s youth is essential to their well-being and of vital importance to our economic future,” Bernanke said at the Fed event on financial literacy.

Wouldn’t you agree that a sound understanding of financial markets and institutions would lead to increased economic activity and growth? Isn’t that what we are all looking for? You have the power to help change the future of our economy right in your own home.

If we raise financially illiterate children we will have an even worse economic crisis than ever before. Families that actively learn about financial awareness raise money savvy kids. Looking at the statistics provided in the study shows it’s up to us to teach our kids how to create, build, invest, and save money.

Many of us here at Live Out Loud have made financial mistakes in our past. Some of us have experienced severe financial crisis. If you knew in your young years what you know now, how much further do you think you would be? Financial awareness education is as important as teaching your kids about the importance of doing unto others and even drugs and violence. Start today!

Here’s a great idea for your school aged kids!

Back to school supply shopping! Get that list and give them a reasonable budget. Let them look online and in the store sale ads. Give them a calculator and have them get the best deals for all of their back to school needs. Get involved. Talk about budgeting. Let them know if they can find the great deals they can keep their left over money. Talk about the best way to spend that money.

Loral

P.S. You can also play the Millionaire Maker game with your kids for a fun time while you’re teaching them how to become millionaires. The picture above was taken at one of the Millionaire Maker Game Nights, this one was in Canberra, Australia. The kids had a great time! We have more coming up for adults and kids.

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