3 Highlights: Kids and Money – Teach Them Early for Lifelong Impact!
To raise awareness on the importance of financial literacy education, we are highlighting and reviewing articles on teaching children about money. We will share a few thoughts on 3 points from each column that HOP off the page to us. We would be delighted to share one or two of your thoughts as well. So, let us know what you think.
Today, we review: Kids and Money - Teach Them Early for Lifelong Impact by Rinar Erickson, CFP®, CAP, posted on Creative Planning.
There is to like about this article! It is a test to stick to three highlights.
HIGLIGHT ONE
Prioritize fiscal education in your household!
…When you make fiscal education a priority in your household and give your kids a chance to make foolish mistakes, they will have a chance to learn by their own experiences how to manage money responsibly and feel the consequences of poor decisions…
I can't pass on this point. It is what we are all about. I think it is straight forward. You reap what you sow. Prioritize financial education with your kids and you are going to get more financially capable children.
HIGLIGHT TWO
…I have learned that the best kind of financial education we can give children is through experience…
Learn by doing is a Sammyriffic way to learn and a core Sammy Rabbit tenet!
My dad was big on learn by listening and observing. It was good to a point. But, particularly as a young kid, I wanted to do and try things. According to Friends' Central High School, 4 of the benefits of hands-on-learning are:
- (1) It is a more engaging way to learn
- (2) It can lead to increased retention
- (3) It can offer practice in problem solving and critical thinking
- (4) It often results in a physical creation
As Rinar goes onto to further share: "whatever works with your family’s lifestyle and values." I think this is essential to emphasize. It is your family. You are there. You are in the best position to assess what is and is not working.
HIGLIGHT THREE
… With birthday money, allowances, and paychecks, we have made it a priority to teach our kids the importance of paying themselves first … We have a five-year-old daughter and she loves it when she earns money. As soon as the money is in her hand, she immediately wants to go to the dollar store ...
This resonates deeply with me. Before creating Sammy Rabbit, I asked myself, if I could only teach a child (or adult) one thing about money, what would it be? It was "pay yourself first." Which we translated for young kids into, saving is a great habit!
I was introduced to the concept in the first book I ever read on personal finance, The Richest Man in Babylon. My dad had me read it when I was 11 or 12 years old. The message resonated. From the first day I started working professionally, I paid myself first. It was the best financial choice I have ever made. It not only helped me to build more financial freedom and security and it helped me to make more "value" oriented spending choices.
BONUS
Here are a few more sentences I really relished from the article!
...learning what money is and how it functions in the real world can begin at an even younger age......The sooner they make the connection between work and money, the better...Let them earn money by doing chores, getting good grades, or whatever works with your family’s lifestyle and values. The important thing is that children see the connection between work and money....We never bail him out, so the onus is solely on him. ...As long as you let them feel the consequences of both good and poor money choices, a financial mistake that might cost them hundreds or even thousands now will most assuredly save them from making truly devastating mistakes when they become adults...
SHARE YOUR THOUGHTS. What HOPS off the page at you from today’s article, via Creative Panning, titled, Kids and Money - Teach Them Early for Lifelong Impact!
SEE more Sammy reviews of articles on teaching kids about money.
