Finance classes for kids should be considered early on.
“Finance classes for kids! Really? They are far too young to worry about money!” does this response sound familiar?
Not long ago, during a coaching session on basic finance, one of my adult clients recalled one experience in her childhood that she said marked her perception of money to this day. This experience has made her realize that teaching kids finance is not an extravagant expense but a real need.
Every time her mother would look at her bank account statements or the screen at a cash machine, the look on her face would transform to either one of worry and sadness or joy and relief. No words were ever uttered about what provoked either reaction, and my client was always left wondering what that was all about.
Well, it was about money, a taboo topic, something mysterious that was never discussed openly by her parents, teachers, or anyone else. As a result, she grew up with lots of anxiety around money and zero knowledge of the topic, clueless about managing financial resources properly. She even made a few costly mistakes with her money during her professional life.
Now that she is well on track to putting her finances in order, she wishes to have had finance classes for kids when she was growing up. However, she knows better now and is considering enrolling her daughter, aged 14, in the FunFinance online course.
It is time to talk about money.
Many other parents nowadays feel the same way as my client. For example, a 2021 survey of 2,000 American parents of children between the ages of 8 and 14 revealed that 83 percent said they would have liked to learn more about finances growing up.
A high percentage of those surveyed, 59 percent, said they still feel awkward talking about money, and 32 percent of respondents said they are uncomfortable speaking about finances with their children. Somehow, this comes as no surprise, as 13 percent of those surveyed said their parents never talked to them about money.
It also seems that the COVID-19 pandemic and its economic implications for many households have pushed parents to speak more openly to their kids about money.
Thirty-five percent of respondents said they are now more likely to share with their children about their financial situation and past mistakes with money than before the pandemic. Thirty percent said they are now more willing to talk to their kids about the importance of saving for unexpected events.
In a recent article published in the Financial Times, Mairead McGuinness, EU Commissioner for financial services, financial stability, and capital markets union, explained that “one in three EU households cannot meet unexpected financial shocks in regular times, let alone in a pandemic.”
She explained that “sudden drops in income and unexpected expenses have put an extra strain on many people, while others have been able to save, but do not know how to make the most out of their savings.”
Finance classes for kids is not an extravagance.
Children nowadays deserve the gift of a business, finance, and economic education to thrive in an ever-changing world. By providing their kids with the opportunity to acquire the essential knowledge and skills to manage money effectively, parents give their children a gift for life, a much-needed tool for their future success.
“Today, the world is different. Myriad complex investment products are now at our fingertips and on our smartphones. We have a younger generation dabbling in crypto, some of whom are taking big risks on a device that fits in their pockets”, EU Commissioner McGuinness said in her article.
“It is because the world has changed that we need to talk about money and financial literacy. People should understand how the financial system works, how it affects them, and how they can make the financial decisions that are right for them. We should empower people, so they know how to navigate their finances. The earlier in life that we build up financial awareness, the better”, McGuinness said.
Money management is an important life skill, and teaching kids should start early.
Ideally, financial education should start at home. However, that is only possible if parents are good role models for managing their own and their family finances. Use our checklist to evaluate what you are (or are not) doing to give your child the right money mindset and healthy money habits.
If you feel you lack financial knowledge and your financial confidence may need a little boost, think of enrolling yourself in a finance course. Have a look at my program “Investment Accelerator”, which is available in different formats.
If you are short of time or simply do not know where to start, give your children the gift of finance classes for kids by FunFinance. I can assure you that it will be more valuable for their future than the latest video game, new wardrobe or a mobile phone upgrade. This season you can purchase any “FunFinance” course and receive a cool-looking gift voucher.
Learn early about money and do it the FunFinance way.
If you read my previous blog articles, you know that I advocate for a broader business education versus a more narrow financial education. The biggest mistake parents make in educating children around money is focusing too much on training our kids’ behavior instead of helping them make sense of our complex world. Have a look at “Business courses for kids: Does it make any sense?” for more insights.
The business case study is a cornerstone of learning methodology at FunFinance. We are proud pioneers to use business case studies for teaching kids. Business cases make our classes engaging and fun.