Opinion: The importance of teaching our children the financial basics
A mother explains a banking app to her daughter Image from Bank of America video Financial literacy is more critical than ever A current inquiry by Bank of America unveiled that about of older teens and young adults comprising Gen Z still rely on family for financial aid realizing just how expensive becoming an adult can be in the present day Studies also show that instilling financial basics at younger ages can pay greater dividends for future money habits Yet largest part schools have only just begun to add basic financial know-how to their syllabus curriculums Here in California students will be required to take a semester-long personal finance curriculum to graduate from high school but that doesn t go into effect until the class of - In the meantime parents and educators continue to look for support that introduce financial learning in a way that will resonate with young minds We believe that fostering financial literacy at an early age with age-appropriate information is key to building the next generation of financially responsible individuals Here are a meager tips for introducing financial concepts to children to set them up for a lifetime of informed confident decision-making Start early at home One of the best options to ensure children develop strong financial habits is to introduce basic concepts of money and budgeting as early as achievable Even at a young age kids can begin to understand simple ideas like the value of saving versus spending Begin by explaining where money comes from why we need it and how it can be exchanged Using age-appropriate language such as talking about saving for something special or explaining how buying currently means you can t buy other things until you have more money can make these concepts relatable Teach with examples The best way to teach kids about money is by incorporating financial lessons gradually into everyday exercises Situations like shopping for their favorite grocery items setting a budget for a family outing or even saving for a toy offer perfect opportunities to discuss money Teaching your child with a hands-on approach during real life events offers them practical understanding without the need for formal lessons Utilize society support There are a variety of free financial know-how programs designed for people at all ages For example Bank of America s Better Money Habits content is not only provided free on its website but is also taught by a squad of more than of its bankers in San Diego in partnership with local schools universities and nonprofits Bank of America also partners with local nonprofits such as Junior Achievement that provides school-age financial instruction in classrooms More and more financial institutions are supporting the entire family with household financial services One example is Bank of America s new SafeBalance Banking a bank account that offers parents the ability to help their children practice healthy financial habits and learn to manage their money through a convenient secure digital experience Parents are able to maintain oversight of their child s spending supervise the account and even teach them the responsibility of managing a physical debit card Financial basics are a vital skill that can set children up for a accomplished future By working together families educators and locality partners can prioritize financial tuition and help children build the foundation they need for a lifetime of smart financial decisions Mark Sutton is managing director for Bank of America in San Diego
