The Benefits of Teaching Children Financial Literacy
Financial literacy underpins sound, savvy money management decisions. But financial advisors and accountants don’t have a monopoly on this skill. We must all incorporate wise monetary practices every day. Money management encompasses earning, saving, spending, budgeting, investing strategies, bill paying, and taxes. It’s integral to daily life.
Consequently, making young children financially literate establishes their future relationship with money. Here are some reasons why financial literacy is essential:
It Helps Them Create Good Habits
Good money management is an invaluable life skill. So, the earlier you learn it, the more quickly and thoroughly you master it. And the sooner you teach your children financial literacy, the sooner they’ll achieve a healthy concept of managing money.
It Helps Them Build a Strong Work Ethic
Too many adults expect life to hand them wealth on a silver platter. But money doesn’t grow on trees: earning it requires hard work. Young people who grasp this truth early develop a stronger work ethic and a sense of personal responsibility.
It Teaches Them the Difference between Wants and Needs
In today’s consumer-focused society, it’s tough to differentiate between wants and needs. This fact holds especially true for young people engrossed in social media trends. After all, strategic retail marketing targets them directly. However, raising children to discern between wants and needs makes them wiser spenders, capable of delayed gratification.
You Provided Accurate Information
Your children may learn some aspects of financial literacy in school but also gain bad habits from their peers. However, taking responsibility for your children’s financial education lets you set the foundations you want them to have. To this end, having regular “money talks” helps them build good money habits from the outset.
They Can Grow — With a Safety Net!
Your children will make mistakes as they learn to manage money more effectively. But allowing them to learn now — while they’re still relying on our provision — builds a sense of security. While there might still be consequences for their financial mismanagement, they won’t go hungry or homeless.
It’s Not as Hard as You Think
Your five-year-old doesn’t need to know the difference between stocks and bonds. But you can teach her the difference between quarters and dimes. Your ten-year-old can’t get a job at Walmart, but he can earn money doing extra chores at home. Your teenager isn’t saving for a house, but he’d probably like a car sometime soon.
This early, stepwise approach makes teaching financial literacy so beautiful — and simple! The building blocks are just that. Build as you go, adding each new skill as your kids become ready. You simply make financial literacy a part of daily life.
Whether looking for the next step in your financial career or growing your team, the Robert Joseph Group is the answer you’ve been looking for. Comprising industry professionals, we provide a boutique experience as we match top-tier talent to the right opportunity. Call today to begin your journey!