Top 5 Financial Skills Kids Should Learn
As a result of growing up in an environment shaped by the economic instability of a financial recession and a housing bubble, Generation Z will grow into a group of smart, hard-working, pragmatic consumers and workers. (Forbes, January, 2018) It’s up to parents and educators to make sure that current students are exposed to financial literacy through digital and hands-on activities. Financial skills can be taught in classrooms, online, at home or in leadership workshops like Junior CEOS. Here are 5 skills that will help shape their financial future.
1. Saving Money and The Importance of Future Planning
Americans have shown a surprising lack of planning for predictable future events such as college and retirement. (Forbes, August, 2018) Future financial planning involves several money handling skills that students should be exposed to at a younger age. Learning how to save money for predictable and unpredictable events can help them avoid a few problems. For instance, debt, foreclosure, bankruptcy or other financial pitfalls in the future.
2. Budgeting Personal Finance and Chores
Budgeting conversations at home can start at a fairly young age by defining wants versus needs. Teaching children how to manage their own finances by giving them a set amount of money per month that will have to pay for some of their wants and needs will help them learn to spend frugally and save up for things they desire. This can replace the traditional “allowance” used only for fun. Generation Z students will have little interest in paper and pen budgets, comparing different digital budgeting apps may help increase their engagement.
3. Investing In Long Term Gains
Investing is an area that is often left un-taught in schools. A riveting, hands-on, lesson can be comprised of investing fake money and using real stock market data to measure results. Several online sources or apps can help with this lesson that gamifies financial literacy and is perfect for this new generation that craves instant results and lots of data.
4. How To Pay For College Without Graduating With A Ton of Debt
A basic public school education in America does not include very much information to students about planning for college. Students need to know that there are more ways to afford the rapidly rising cost of higher education than with high interest loans. Options like work-study, financial aid applications and scholarships could help students pay for college without much debt, but only if the education starts early enough so that students and parents can put their plans in action.
A perfect lesson for our future leaders is to have students start and run their own small business. (Forbes, December 2011) This puts their budget lessons into action and helps them learn responsible spending as well as how to turn a profit. Starting and running a small business or charity also looks fantastic on college applications. Furthermore, it is important to encourage kids to think outside the box and to exercise their creativity.
Making Financial Literacy Should Become A Priority
In Conclusion, making financial responsibility lessons a priority for today’s youth will yield huge rewards for our future and theirs. The future leaders of America are looking to parents and educators to provide valuable lessons and advice that will help them excel in college, their personal lives and their careers. Give the gift that keeps on giving this Holiday season, JuniorCEOs.org!