Why Teach Your Kids About Financial Literacy?
44% of Americans do not have an emergency fund of $400.*
56% of Americans have less than $10,000 for retirement savings.**
69% of students take out a student loan, with the average loan being $29,800.***
There are many obvious reasons why kids need financial education. The most glaring being the lack of readiness for an emergency, little retirement preparation and the rising debt load for students.
These numbers are a wake-up call. In order to have bright financial futures, kids must learn how to manage money… early. When they have good money habits from the start, they are in a better position to manage money responsibly as adults. Experts in the financial industry agree unanimously, kids who receive financial education at a young age are infinitely more likely to have financial success in the future. Knowledge and habits are key.
It’s not just about saving and debt ratios though… there are wellness benefits to financial education as well. I have read numerous studies that show there is a link between financial confidence and general health. Understandably, money can be a big stress for individuals and families. It goes without saying… the better you feel about your finances, the more at ease you will feel in your life.
It is clear, teaching kids about finances is as important as reading, writing and arithmetic. It keeps the mind, the body, the soul and the pocketbook healthy!
*, ** Forbes Communication Council