On April 23, thousands of banks across the country recognized the seventeenth annual ‘Teach Children To Save Day.’ Organizers of the event, which includes American Bankers Association (ABA), encouraged families and schools to teach young children about financial literacy and personal financial management.
Bankers and investors advise Americans that it’s never too early to teach children about spending and saving money. But money can be a difficult subject to broach with children regardless of whether you are wealthy or not. Children must understand that managing money involves being responsible, understanding the true costs of spending vs. saving, and recognizing the importance of living within a budget.
Many of life’s lessons about money occur as you live them, and it’s important to maintain this realistic approach when teaching children about personal financial responsibilities. But there are several resources, such as banks, business columns, and websites that all provide the tools of financial education with in-depth knowledge of how to make use of money to achieve long-term goals.
The ABA encourages parents who use helpful money teaching tools to recommend them to their children’s schools. Curriculums are adjusted based on parental feedback, and as schools receive multiple requests to develop classes about personal financial management, the curriculums are more likely to be adjusted accordingly.
One lesson that all children should learn is the complicated intricacies of buying a home. Most children won’t understand what a mortgage is, or how the home sale process operates. Parents and schools can teach children all about home loans, down payments, and mortgage rates using financial literacy tools. In the end, children learn the lesson that they must use money responsibly, while also putting away savings to pay for the terms and conditions of a home loan.
If you wish to teach your children all about money, use the resources available to help make the next generation financially responsible.