With learnings from various platforms out there – Acorns, GoHenry and Juni to name just a few – here are some tips to consider:
- Start early.
It's never too soon to start teaching your kids about money. The earlier you start, the better prepared they will be to navigate a lifetime of personal finance choices.
- Meet them where they are - leverage technology and make it fun.
Technology can be a powerful tool in educating and motivating kids, especially when it comes to financial literacy. Platforms such as GoHenry are easy to use and can be a source of motivation and fun. Learning games and visual engagement bridge the gap between abstract and tangible across age groups.
- Make it personal and make it REAL.
For example: For a 13-year-old who is a budding entrepreneur excited about building an investment portfolio, try Acorns Early, a custodial investment account for minors, to invest on their behalf. But don’t just make decisions for them on where to invest, let them self-advocate. Having a clear and specific outcome in mind when making decisions helps to focus more on the choice. With access to the account platform in real time, kids can track the status of their investments – making the outcome of their choices very real. If you want to facilitate additional learning try Juni, a platform with classes geared towards children, focused on entrepreneurship, and investing – which are often left out of school curriculums.
- Lead by example.
The greatest impact can come from the example you set. Demonstrate good money habits, show balance, budgeting, accountability, and transparency. Discuss different types of debt, impact of credit scores, the consequences of high-interest rates, and the importance of saving. Leverage real time examples and make them teachable moments.
Educating the next generation about financial literacy is not just about preparing them for a financially stable future, but also helping them develop crucial life skills and decrease financial anxiety. So, let’s all take advantage of Financial Literacy Month and start teaching the next generation about money management skills.
Check out these resources:
Financial literacy for kids: Why is it important?