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davidlerner.com > Financial Literacy  > Teaching kids about finance

Teaching kids about finance

Finances shouldn’t be something that you wait until you are in your twenties to learn about. If you want your children to be financially savvy and be able to navigate any future challenges that may come their way you need to make sure that they have been educated about money. Teaching kids about finance may seem like a tough task but if you do it right everyone wins.

The value of money

Teaching your kids about the value of money is the first step on the road to financial literacy and security. Understanding what money is worth and how to save is part and parcel of learning the value of money. Setting chores so that they can be rewarded with their allowance is one way to do this. The more they understand how money is made and its value, the better they will be later in life. Once your kids understand the value of money and actually have money in their hands, they have to learn what to do with it. As of 2021, 75 percent of teens lacked confidence in their knowledge of personal finance and 73 percent reported wanting more personal finance education.

As we get older, it is even more important to be in control of your money. Unfortunately, Americans feel alone and confused about their finances. 25 percent say don’t have anyone they can ask for trusted financial guidance.

“Finding a trusted financial advisor to guide you through the pitfalls associated with investing there is an integral part of setting yourself up for a secure financial future,” says Rafe Klein, Senior Vice President, Investments for David Lerner Associates “Never make risky investments, always stay with a sensible middle ground of investing.”

It is quaint to think of American kids keeping their money in piggy banks. 29 percent of children in the US have piggy banks which they use to save their coins and allowance. There is something romantic about dropping a coin into the ceramic pig and hearing it fall onto the rest of your savings. However, this is modern America and kids don’t just stash away their money in small hollow pigs anymore. In 2022, approximately 39 percent of children from eight to fourteen years old had a savings account in the United States. This means that around 40 percent of young Americans are saving money already which is a good sign for the future. As we move into the future young Americans will be the next generation. Hopefully, they will be prepared.


IMPORTANT DISCLOSURES

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.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.

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