Tips for Teaching Kids Financial Literacy

Discussing the topic of MONEY with your KIDS is a necessary step in their growth and development. 🚀 

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Transcript

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Welcome to You and Your Money. Empowering you to Plan Well, Invest Well and Live Well. Joining us today is Holly Wanegar, associate vice president and wealth advisor at Weiss, Hale and Zahansky Strategic Wealth Advisors. So, today's topic I love this topic. Financial literacy for kids. Yeah. Kids. Now, from your experience, Holly, do you think financial literacy is adequately covered in school these days? What do you think? Unfortunately, Gary, financial literacy historically has not been a common part of the curriculum. Right? However, we are seeing a shift there. as recently Connecticut passed legislation requiring students to complete a half credit course in personal financial management to graduate from Connecticut public schools beginning with the class of 2027, which are entering high school this fall. So why is this important for kids to learn about financial literacy at an early age, why is that important Holly? Well, Gary, the earlier that children develop and understand financial concepts, the better equipped they will be at making informed decisions about money throughout their lives. Without proper guidance, they may face challenges with budgeting, saving, investing and managing debt later on. So what can parents do to participate and ensure that their kids are financially literate? So there are several strategies that parents can implement. And today, I'd like to focus on three tips that involve hands on experience. Allowing children to experiment with the basic concepts of money management, such as allowing them to experiment with providing a small allowance that they can decide then how to spend or save in a safe space, even if it means making mistakes. Initially, this can be a valuable learning experience. Good. These are the basics. So an allowance. So you're handling, let them handle some money via the allowance which is great. What else do you recommend Holly? So one of the first steps specifically is to involve children in household budgeting. Really. For example. Yeah taking them grocery shopping, having them keep track of the running total can teach them about making choices based on their predetermined budget. Yeah, let them freak out about the cost of groceries, just like mom and Dad. that's a great idea. And it makes, again, that, you know, doing that that's a really good idea. Makes it more, tangible, more relatable, too right? Yeah, definitely. The a second tip is to gamify the process. We all love a good game, especially if there might be a prize at the end. And you can do this by encouraging children to search for coupons and sales or even introducing them to some stock trading. Similar simulators for older kids, such as Investopedia Simulator is a good one to find online. Yeah, these are really good. good tips so far. What else do you have for us, Holly? Lastly, instilling a strong work ethic by allowing children to earn their own money through part time jobs or entrepreneurial activities. I think, maybe we all had a lemonade stand at one point. Love a kid with a side hustle. Yeah, right. Don't you? I love it. Yeah, yeah, those can be really valuable activities and helps them to understand the value of hard work and the rewards that come with it. Yeah, these are, you know, these are all really, really good tips. A lot of common sense here. But say you got to take the time to do it, to do it, to follow through, do the things that Holly, mentioned, and to instill that, on a, at an early age, good stuff. Holly, before we wrap up, anything else we should know? Yeah. I'd like to remind everyone that National Teach Children to Save Day is celebrated every year on April 27th, and this occasion really serves as a reminder for parents to prioritize financial literacy education for their children. You could even use this as a starting point to kick off your financial literacy curriculum at home, using the three tips of involving them in household budgeting, gamifying spending and investing, and instilling strong worth of work ethic. and also an effective way to teach children is leading by example. And at Weiss, Hale and Zahansky Strategic Wealth Advisors. We offer complimentary consultations to educate our clients on vital money management concepts and work together to develop personalized financial plans using our Plan Well, Invest Well, Live Well strategic process. Wow, great information here. Thank you, we're out of time here today. But thank you again, Holly, for joining us and sharing your expertise. It was my pleasure, Gary. Thank you for having me. Great information again today. Thank you Holly from, associate vice president, wealth advisor from Weiss, Hale and Zahansky Strategic Wealth Advisors. If you'd like to help with incorporating financial planning into your parenting approach, get in touch with the team at Weiss, Hale and Zahansky so you can request a complimentary consultation on their website, whzwealth.com or call (860) 928-2341 As always, thanks for listening to you and your money. Find even more episodes, videos and other resources at our website whzwealth.com. Weiss, Hale and Zahansky Strategic Wealth Advisors offer securities and advisory services through Commonwealth Financial Network member FINRA/SIPC, a registered investment advisor. Fixed insurance products and services offered through CES Insurance Agency. They practice at 697 Pomfret St, Pomfret Center, Connecticut 06259, and can be reached at (860) 928-2341. Weiss, Hale and Zahansky Strategic Wealth Advisors do not provide legal or tax advice. The tenured financial services team strive to support clients in achieving their financial life goals. For more information regarding wealth management, customized financial planning with Weiss, Hale and Zahansky Strategic Wealth Advisors, please visit www.whzwealth.com.