To truly be impactful, though, financial lessons can’t be relegated to school alone. Adults must get more active in the financial education of the children in their lives. Parents, grandparents, aunts, uncles or even neighbors can help young people better prepare for their financial future.
Michael Joyce column: Prioritize financial lessons for young people | Columnists
Many adults avoid talking about money with their kids. Yes, these conversations can be difficult and awkward, but exposing young people to basic financial management will yield life skills they desperately need.
Adults would be wise to start with three areas. First, help young people open a savings or checking account at a local bank or credit union. That first account is an incredible teaching opportunity to talk about savings, interest and more. Second, create a budget together. Make the budget relevant for them by focusing on clothes, groceries or spending money. Work together to update the budget and track expenses weekly or monthly. Third, if you don’t have a 529 savings account, open one. Use this account to save for college and to discuss investing with kids.
These areas especially are relevant during the summer months because many young people have summer jobs. Adults can work with them on how to save their money and properly budget. Additionally, with young people out of school for the summer, adults can take more time to discuss financial lessons. For example, teach young people about budgeting by taking them to the grocery store with a budget in hand. They can help make decisions about what to purchase with that budget.