You have heard the term. You know adults need to understand money. But what is financial literacy for kids?
To keep it simple, financial literacy for kids means learning good money habits. It is all about education. Like the saying goes… knowledge is power.
We need to start focusing our kids on creating responsible money habits. These habits include spending wisely and with insight, practicing smart spending processes, learning savings patience, and planning for saving goals. It also includes understanding bank account fluctuations and how to keep track of your balance. These are life skills that are as important as learning how to read or ride a bike.
Financial literacy is understanding how to thoughtfully manage money and use forethought to make choices. And for kids, it is an essential part of learning and growth.
We all want our kids to be successful in life. Bright and healthy financial futures are formed from strong money habits. And habits are developed over years of practice. Explaining these concepts to your kids gives them an advantage of huge proportions. It can be the difference between achieving the lifestyle they dream of or the one they settle for.