Empowering Financial Literacy in Youth: 4 Easy Tips to Start Today
At the core of my work is a passion to help individuals learn how to use and save their money, often times with 25-60 year olds. I’ve been lucky to additionally work with children through various different programs within the YMCA/YWCA programs, and non-profits throughout the Northeast areas and in Florida. These opportunities continuously challenge me as I learn about how parents and guardians are shaping the conversation around finances with their children. Starting out when they first learn the concept of money will help shape a positive relationship with money when they finally are able to open their own bank account, and years ahead of when they can sign contracts for their first job.
Parents: It’s never too early to start the conversation.
1. Build a Budget
Starting the conversation with kids can be as easy as utilizing fake money and having them pick what they would want to spend their money. Consider looking at “gamified” ways to begin having those conversations in a fun and engaging way.
As a part of some of my sessions with youth, we will ask questions about what is important to them and give them real life scenarios to mirror spending and saving money. This is often a great lesson to the kids as they realize they could’ve eventually spend their money on something greater if they had waited to save.
2. Start an Emergency Fund & Talk about it!
Having an emergency fund is something everyone should have, whether you are 16 or 61. If you don’t have one yet, consider sitting down and talking about it with your kids as a means of transparency but also top mirror smart financial behaviors that will benefit your family and teach your children what it means to save and be prepared financially! Utilize a high-yield savings account or even platforms meant for emergency funds.
Regardless of how much you put into it, how you are saving the money, or how often you deposit, it’s important to create a baseline.
3. Integrate financial education as a habit
The act of education doesn’t end when the school day ends, and even for adults- it doesn’t end when you leave school. Unfortunately for many schools and systems, financial education isn’t mandatory as a part of curriculum. Start building healthy habits with your kids by trying to:
- Monthly Reading on financial education topics
- Have weekly conversations about money spend
- Take in-person classes with your kids about financial education
- Utilize local bookstores and libraries when they do free financial workshops
- Find online workbooks and worksheets to do with your kids
4. Create a roadmap for your family
The best way to educate is through your own actions, and if you’re not following your own advice, how can they learn? Consider sitting down and roadmapping a journey for your own finances. Show your kids, be transparent (as you wish) and start to mirror the same behaviors and attitudes that you wish for your kids to have as a financially-responsible adult.
Empowering the youth to become financially savvy is necessary during these times. It’s important that you start conversations early, lead with enthusiasm, and leave conversations open and honest. Whether you are learning with them, or creating the environment that’s healthy and focused, make sure you are engaging with them. Through budget building, emergency fund planning, active education, and financial planning; you are one step closer to building and supporting a financially-smart generation!
