A child’s brain develops faster in the first five years than at any other time in their lives. This is the time when the foundations for learning and behavior throughout life are laid down. The root causes of an individual’s financial situation, at any age, often can be traced back to the influences he or she experienced in childhood. So, a father’s role in teaching financial literacy is a vital one.
A recent survey from the National Financial Educators Council shows most parents have not taught their children enough about money to prepare them for adult life. Only 15% of parents talk to their kids about money once a week. More than 30% said they never discuss it with their children.
“If these skills are not taught early, and reinforced throughout their youth, by the time they graduate high school they’ll not have key skills needed to meet the financial challenges of adulthood,” advises Rafe Klein, Senior VP Investments for David Lerner Associates.
The survey shows that more teenagers regard their mother as the primary source of financial education. although statistics show that handling finances in a household is almost evenly split between moms and dads but when it comes to investments men are taking charge
Here are some tips for teaching financial literacy to your kids this year.
The theory is not enough
Although financial literacy concepts do need to be understood, kids learn better by applying what they’ve been taught. You can start them off with a savings account when they are very young and use it to teach them about savings and compound interest.
Teach by example
One of the best ways for a young mind to absorb information is by watching their parents. As a dad you can show your children the value of budgeting and setting future financial goals. Give them an allowance and have them set goals and a budget.
Make it Fun
Kids respond well to games and apps that make learning about money more engaging. These games can teach them how to make informed decisions, receive feedback, and understand the consequences of their choices (whether positive or negative).
Try these free online finance games appropriate for elementary age students (grades K-5).
This interactive game lets kids practice identifying, counting, and saving money while learning fun facts about U.S. currency.
An interactive game for kids to learn about managing money. It has resource guides for parents.
H.I.P Pocket Change
Games from the U.S. Mint that teach kids about currency and managing money.
Although your children will be celebrating your role as a father this month, remember to involve them in your financial decision-making, so that they can benefit from your knowledge and learn to handle their finances when they are adults.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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