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Financial education is crucial to creating smart money habits, which lead to a better quality of life. Poor money habits are difficult to change, so introducing financial basics at an early age is an effective way to build a better, long-lasting money mindset.
The stress of overspending and debt creates tension for many American families. A recent survey revealed that 67% of parents are stressed out about back-to-school shopping, and 1 in 5 parents anticipate having more shopping-related fights with their children this year. These numbers show a direct link between money issues and family tension.
A very effective way to ease tension caused by money problems is financial education. Teaching kids financial literacy can lead to better shopping decisions and less shopping-related arguments. Here are four effective resources to help children learn about money early as well as considerations for college-age children:
Top kids finance resources
Kids Finance Initiative holds programs run by world-class educators to teach kids and teens crucial financial lessons that they likely won’t learn in school. KFI aims to revolutionize the education system by empowering kids through innovative programs including: Millionaire Kid, Investing and Entrepreneurship Decoded. Kids Finance Initiative also has a blog that helps parents approach money topics with their children.
One of the first ways children learn about money is through an allowance. Jassby is a free app for iOS that promotes financial learning by doing and through real-life experiences. The Jassby app allows families to manage chores, allowances and shopping all in one place. Jassby promotes a “money metamorphosis” by turning kids into financially responsible adults.
With many schools going virtual this fall, parents are finding themselves taking on more of a teacher role to their children. Next Generation Personal Finance offers personal finance courses for middle and high school teachers to implement in their curriculums. Creating a teacher account is free, which gives access to a Teacher Tookit, and NGPF provides fun interactive online games that children can play to learn more about personal finance topics.
BusyKid is a chore app that allows kids to earn, save, donate and invest their allowance. This app helps kids learn about being financially responsible while helping with family chores. The app features a chore chart that matches the appropriate chore and allowance by the age of the child. BusyKid also features a blog that helps parents with teaching their kids important finance lessons.
Don’t forget about your college-age kids
The resources mentioned above are helpful in teaching children about finances early in life. Once your children are 18+ years old, it is critical to consider setting them up for financial success by building their credit. Building credit prepares college-age children for financial success because a high credit score will give them access to better rates to finance future endeavors. Setting up a student credit card is an effective way to help college students build their credit. Not only is it crucial for building a high credit score, but students can reap cash rewards that they can use toward college expenses, like food, travel and books.