A few weeks ago I was sent a book for Max, Peter Saves For A Rainy Day by Rosanna Guadavaccaro and it got me thinking about the topic big time. Rosanna is a NYC Financial Advisor and decided to write this book to teach children financial literacy – a topic that most parents don’t speak about.
So I got to reading and researching and low and behold I read on an article that only 16% of millennials ages 18-26 felt optimistic about their financial future. Like WHAT?! Only 16%, yes. So as a millennial it’s no one else job but ours to break that cycle for our children. It is our job to give our children the necessary tools and knowledge to succeed, finances included. I don’t know where this topic became almost like a taboo to speak about in from of our kids, maybe when we started babying them and essentially ruining them. Because in 1935 when little Richard was already working at the age of 8, trust me he knew the value of a dollar.
I am one of those parents that want to shelter her children and protect them and keep their innocence alive as long as possible but this really got me thinking. There are so many things that you can introduce to them financially that are age appropriate. I’m not saying they have to learn how to balance a checking account at the age of 5 but there are life skills and habits that definitely can be instilled at an early age. Here are a few:
- Knowing and acknowledging the difference between needs and wants.
- Reinforcing that money is earned not given.
- Try using real money when shopping with your kids, not a debit/credit card.
- Start a small allowance so that they can understand the value of money.
- Offer saving incentives.