Financial literacy for kids: how to teach your kids about money

#77: Teaching financial literacy for kids may seem like a tall order…when considering that financial literacy even for adults is a national deficiency.

But teaching kids about money is crucial if you want your kids to grow up financially responsible and independent.

As a parent, you will have a strong vested interest in it, because if you fail at it you’ll eventually pay the consequences (literally), e.g., if your adult kid can’t support themselves and move out of the house.

And early retirement? You can probably kiss that goodbye if your kid is financially reckless.

So, instilling good financial education for your kids is a wise investment…maybe even the wisest investment.

This week, I spoke with Robin Taub, author of the book “The Wisest Investment,” about how to instill financial literacy for children. We discuss strategies, role modeling, and techniques for teaching personal finance and money lessons to your kids.

What you’ll learn:

• Why teaching kids about money is hard
• What financially well-educated kids have in common
• The right age to start teaching kids about money in earnest
• The crucial money lessons kids at each maturity level should know to have healthy skills, habits, and mindsets about money
• Robin’s core framework for teaching kids about money
• Common mistakes parents make when teaching their kids about money, and the most effective role modeling parents can do to successfully teach their kids about money
• How to get kids to become self-motivated to learn about money, saving, investing, and budgeting
• How parents can create teachable moments in daily life and turn them into money lessons for their kids
• How to answer awkward questions like “how rich are we” and “how much money does our family make”
• How parents can help teach their kids to embrace impulse control and delayed gratification when it comes to money
• Guidelines for paying kids an allowance or paying kids to do chores
• How to teach kids about budgeting (and when it’s age appropriate)
• For affluent families: how to make sure your kids don’t take money for granted or become spoiled entitled brats

What methods have you found to be effective when it comes to teaching your kids about money? If your kids are self-motivated to learn about personal finance – earning, budgeting, saving, investing – how did you get them to be self-motivated? Let me know by leaving a comment.

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Related links:

• The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life
• Robin Taub
• 9 Crucial Money Lessons Your Kids Must Learn to Succeed as Adults (HYW027)
• Schedule a private 1:1 consultation with me
• HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.