Here’s How Parents Can Help Their Kids Learn Smart Money Habits

In our uncertain economic environment, it can be hard for even seasoned adults to make the right financial decisions. And since nearly half of all U.S. states have no requirements regarding teaching high school students about personal finance, we can’t automatically expect the next generation to be any better at navigating their own way.

Parental tips

California recently became the latest state to mandate high school courses on subjects like creating a household budget and saving for the future. But in the two dozen states with no such requirements, these lessons fall entirely on the shoulders of parents and guardians.

No matter where you live, it’s a good idea to teach the next generation the basics — but if you don’t know where to start, experts have a few simple tips.

• Get a head start: It’s never too early to establish a baseline of knowledge. Even the youngest kids can learn lessons about how money is a limited resource and buying things requires people to make choices about how to use that resource.
• Help make a plan: As kids get close to their teenage years, it’s time to start teaching the importance of investing and planning for the future … from saving for a big purchase like a car or putting money away for college.
• Lead by example: In the end, kids tend to replicate the models they’re given during childhood. So parents are advised to demonstrate their own financial decisions and have open conversations about the topic whenever appropriate.

Parents might not be able to rely on the education system to provide all the information their children will need to be financially literate, but communication at home can at least provide the foundation necessary to avoid some of the pitfalls that ensnare so many adults of all ages.

Chris Agee August 8th, 2024

Share this story: