Starting Financial Education Early
We all want our kids to grow up confident and prepared, especially when it comes to money. But let’s be honest: many of us didn’t get much financial guidance growing up. Now, we’re the ones teaching the next generation.
So where do we start and why is it important? Kids begin forming money habits as young as age 7. That means the sooner you start teaching them the basics like saving, earning, and making thoughtful spending choices, the better. That doesn’t mean sitting them down for a lecture on compound interest. It can be as simple as:
- Giving them a small allowance in exchange for chores.
- Letting them compare prices when shopping to find the best deal.
- Set a shared savings goal for siblings, like a new game or a pizza night.
- If you work, Bring Your Child to Work Day is a great chance to show them how financial decisions get made.
These everyday experiences can help them build their understanding and encourage them to make smarter choices in the future.
What Schools Don’t Teach
Financial literacy is not widely taught in U.S. schools. As of 2024, only 35 states require high schoolers to take a personal finance course to graduate. As a result, many young adults end up learning about credit cards and student loans through firsthand experience, often without a strong understanding of how they work. It’s no surprise that many adults today feel behind. Without early financial education, planning for retirement can feel confusing and out of reach.
