As school exams get underway there’s a lot of
stuff being digested in teenage bedrooms all over the country. I don’t just
mean chocolate hob-nobs, but maybe some geography, german and algebra too.
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| Are modern kids prepared for the money world? |
However, one subject that’s notably absent from the
modern curriculum is financial literacy.
In a couple of years hoards of these
youngsters will be managing their own finances, perhaps while saddled with
student loans. And research shows that a big chunk of them won’t understand the
money basics, like the difference between AER and APR or how compound
interest works, by the time they reach adulthood.
That’s why I welcomed the launch this week
of a website aimed at helping kids understand money. Moneyasyougrow.org is a site that
features 20 essential money milestones that kids go through from the age of
three to eighteen.
OK, it’s a US site but loads of the common
sense stuff applies here too.
As do the key activities that help kids to
learn at each age stage. I’ve selected just one for each age group here:
3 – 5 year olds need to understand that you
may have to wait before you can have
something that you want (see my earlier blog on one thing to teach your kids)
6-10 years olds need to know that it’s good to shop around and compare prices
before you buy
11- 13 year olds are advised to save a dime
for every dollar they get (for kids in the UK that would be 10p in the pound, although I suggest a third is better)
15 – 18 year olds are advised to use cash
rather than credit cards for purchases and the over 18s are told they should
only use a credit card if they can pay off the whole balance in full every
month.
Many of the money problems we see in adults have their roots in childhood.
So many of us had little or no financial education as kids and grew up into financial illiterate adults. Others had parents who handed down such strict money rules that money strikes fear in them years later and they avoid responsibility.
One way to stop this pattern repeating itself if you have kids is to start a simple money education as soon as they are old enough to reach up and hand their pennies over the sweetie counter. The moneyasyougrow site is a good place to start; there are also lots of tips in Sheconomics.
So many of us had little or no financial education as kids and grew up into financial illiterate adults. Others had parents who handed down such strict money rules that money strikes fear in them years later and they avoid responsibility.
One way to stop this pattern repeating itself if you have kids is to start a simple money education as soon as they are old enough to reach up and hand their pennies over the sweetie counter. The moneyasyougrow site is a good place to start; there are also lots of tips in Sheconomics.
