Despite America ranking number one In the global economy, many students complete their education without mastering basic financial concepts. Terms like “credit repair” and “debt consolidation” have become common in the financial industry. To avoid these problems, it is crucial to introduce children to essential topics such as investing, credit, insurance, real estate and taxes at a young age, so they can play later a positive role in our financial system.

According to Intuit’s Financial Literacy Survey, most high school students today rely on their parents for financial knowledge. It is therefore primarily up to parents to instill financial knowledge; the younger the better. Below, I discuss engaging ways to teach finances to elementary students.

What I tell my clients

A crucial misconception that parents make is not sharing the family’s financial situation and goals with the family and not providing learning tools. Sharing family income, budget, investments and debts makes the topic of money more relevant.

Use the tools to your advantage

Previous generations suffered from a lack of information and access to education, while current generations face information overload and don’t know where to start. I encourage parents to contact their state treasurer or regional Federal Reserve offices to find free and fun information. resources to teach your children. Many brokers offer paper trading, which allows you to buy and sell securities without using real money. This is a great way for children to understand the concept of buying and selling securities.

Include your elementary students in family finances

Involving primary school students in family finances from the age of six is ​​crucial to their financial literacy and understanding. Parents should discuss family income, budget, savings, insurance, investmentsand expenses. This helps children understand the value of money, the importance of making informed decisions and the consequences of financial choices.

For school-aged children, introducing topics like saving, investing, credit, real estate and charity can get them thinking about money. When paying allowancesmatch the child’s contributions to their savings and take the opportunity to explain interest and employer 401(k) matching. For charity, find a community cause they love and volunteer or donate.

When they reach adolescence, consider using apps like Cash app, Robin Hoodand banking apps that allow you to spend, save and invest.

The essentials

Addressing financial literacy early is essential to preventing future financial difficulties. By integrating personal finance education into school curricula and involving children in family budgeting, we prepare them for real-world financial responsibilities. Through these efforts, we can equip the next generation with the knowledge and confidence to navigate the complexities of personal finance, fostering a more financially literate society.