Why It’s Important to Begin Financial Education Early
Why It’s Important to Begin Financial Education Early
“If you always do what you’ve always done, you’ll always get what you’ve always got.” ~Henry Ford
This quote rings true when it comes to handling money. If we want our kids to have a brighter financial future, we must be open to change. As parents, we all want the best for our kids. We strive to protect them from life’s hardships, and this often includes shielding them from discussions about our financial issues and decisions. However, what might seem like a protective measure could, in fact, be doing them a disservice.
For too long talking about money with your kids (or anyone for that matter) has been taboo. Giving our kids a better financial future means letting go of the reluctance to discuss money matters and embracing a proactive approach to financial education that they can participate in now, not later.
It’s time to swallow our pride, change the way “it's always been done” and engage in open conversations with our kids about money. By age 7, many of your kids’ money habits will already be set. So, it’s important to start early, as young as six, and encourage them to ask questions. Create a safe and non-judgmental environment where they feel comfortable sharing their thoughts and concerns. By doing so, we foster a sense of trust that will encourage them to come to us for guidance throughout their lives.
Change doesn’t always have to be stressful and difficult, it can actually be fun and immediately rewarding if you approach it the right way!
Why Start Early?
The truth is, most adults struggle with managing their finances effectively. If we continue to avoid discussing our financial struggles and decisions with our kids, we perpetuate a cycle of poor money management. Kids tend to learn by observation and practice. If they don’t witness responsible financial habits and aren’t engaged in conversations about money matters, they may replicate unhelpful behaviors later in life. By not only sharing our experiences and decisions, both good and bad but also providing a way for our kids to get their own experiences with money, we provide our kids with valuable insights into the consequences of financial choices while they are still in a safe environment and mistakes won’t have a life-long impact. Beginning early enables them to learn from small missteps, learn to avoid common pitfalls, and make more informed decisions when it comes to their finances.
The more you engage them, the more they engage!
Bringing our kids into family conversations about money empowers them to understand that this is just part of everyday life. Getting them into activities of making and managing their own money helps develop their independence, boosts confidence, and builds habits so they can make better financial decisions. Allowing them to make their own financial decisions, even if they make mistakes, gives them the opportunity to learn and grow in a safe environment before they face more significant consequences as adults. You can start letting them control their own finances through the GravyStack 3E’s home economy system. They will learn to save, spend, and share money that they have earned on their own.
Focus on the positive
Financial education shouldn’t be a once-a-year, dreaded lecture. Instead, make it a regular part of your daily conversations and family interactions. In fact, we encourage you to play! Have fun setting savings goals, compete as a family to see who can reach their goal the fastest, and celebrate the win when the goal is met! GravyStack gamifies all aspects of finances from savings goals, to charitable giving, to learning about cyber security! When kids and parents begin having rich conversations about money, that’s when you know the tides have turned. Sign up for our Elite subscription if you want the easy button! You’ll get bi-weekly texts with dinner table questions to start these conversations. For more information about our subscription options, click here:GravyStack App.
Are debit cards for kids really the answer?
With credit card debt now over one trillion dollars for the first time in history, it is easy to see why kid's debit cards could seem like a tool to help the problem, rather than the solution! And we couldn't agree more UNLESS that card comes with financial education, home economy systems, and a roadmap for parents and caregivers. You see, allowing your kids to make their own financial decisions, even if they make mistakes along the way, is key to their growth. In fact, it’s better for them to make these mistakes early so they don’t make bigger, more costly mistakes later in life. But we all know that spending that $20 grandma gave them for their birthday feels a lot different than if they spent the $20 they earned with their own effort.
cards for kids can be a good tool, but only if the money on it is earned, not given. Only if it represents a portion of their earnings meant for spending, and some is reserved for long-term savings to teach delayed gratification as well as charitable giving to teach generosity. And Only if the kids are engaged from beginning to end and can see the flow of money.
The GravyStack system provides everything kids and families need to really get their kids engaged in good money habits at an early enough age to impact their financial future.
Key Takeaways
Beginning financial education early is crucial for our kids’ future financial well-being. We must let go of the misconception that shielding them from our money issues is protecting them. Instead, we need to be open and honest about our financial experiences, allowing our children to learn from our mistakes and set them on a path to financial success. By starting early, being open about our own financial journey, and getting the kids involved with their own money management, we can help our kids develop healthy money habits. Let’s empower our kids with the gift of financial education, giving them the knowledge, tools, and skills to build a brighter and more secure future.
Financial education is not just a nice-to-have; it’s a must-have for our kids’ future success. In fact, 73% of teens reported that they wanted more personal finance education. No matter our own financial know-how, everyone can help their kids develop healthy money habits, and it can be fun! Let’s empower our kids with the gift of financial education, giving them the knowledge and skills to build a brighter and more secure future.
