It’s no secret that many children today lack skills in financial literacy. Basic financial skills such as money management, budgeting and savings accounts are hard to model in an ever changing world focused on tech and media. As a parent, it’s important to educate your child on the importance of being financial literate in a world that depends on it. We’ve partnered with Girl Scouts of the USA (GSUSA)to bring you 4 low-key approaches for every mother to help build your kid’s financial literacy.
Four Low-key Approaches for Building Your Kid’s Financial Literacy
- Make learning financial literacy tactile.
Once your child has a good understanding of what money is and how it’s used for wants and needs, begin showing them and letting them touch the money. Start with a variety of coins and bills and let them spend some time examining the elements of each piece of currency – notating the similarities and differences.
- Discuss what money and spending is.
Often times, some of the first discussions around financial literacy are about investing and money management – but taking it a step back and explaining to your child what money and spending is, is so vital. The concept of money is extremely simple and is the basis of what it means to be financially literate.
- Involve your child in daily financial activities.
Talking your child through basic everyday transactions such as grocery store runs, writing a check, using the ATM or paying for dinner at a restaurant are all scenarios that can help make money a tangible item to your child, rather than being an abstract and farfetched concept – remember, every purchase is a teachable moment.
- Give your child an opportunity to budget their own money.
If your child receives an allowance (whether it be with real or pretend money), this is the perfect opportunity to allow them to budget their own money. Taking the time to teach your child how to manage whatever amount of money they may have, is what helps your child understand how to make their money last and work best for them in any situation.
For parents looking to guide their child towards smart money management at an early age, incorporating these 4 approaches into your daily routine is sure to help build their financial literacy.
Girl Scouts offers fun, interactive entrepreneurship and financial literacy activities for both members and non-member, visit girlscouts.org/entrepreneurship to get started. To sign your daughter up to be a Girl Scouts and learn more about how to build your child’s financial literacy, visit, girlscouts.org/join.
The Financial Literacy Badges were made possible by a generous grant from Charles Schwab and its Founder.
