More Americans are being classified as financially illiterate
Teach kids money-management, not just abstract math discuses that Americans are not financially educated. The article also gives a solution to the problem.
So what is the problem? Less than 50% of Americans:
- Have money in a savings account.
- Have some type of retirement plan.
- Could handle a crisis without borrowing money or selling their belongings.
The solution to the growing debt problem:
Schools should provide instruction regarding financial responsibility to children. There are math games and strategies that teachers can use. With their students they can help them realize the importance of being financially literate.
There are useful way to teach children how to manage money
Give them practical experience through practice situations. Specifically, parents can refer to the ebook “Toddlers to Teens: Raising Financially Responsible Kids.” The ebook is filled with activities, such as:
- Help children use coupons in stores.
- Have older kids/teens participate in bank transactions.
- Give older kids a prepaid card. This can prepare them for what it would be like to use a debit/credit card.
Financial education is important for kids early in life
It is more important to continually teach a child finance. Especially from the perspective of why they should learn about money. They need to learn why and how debt can ruin their finances. And need to learn the consequences. This will motivate them to avoid debt.
Currently, American adults are not well-versed in money management. Several statistics show that a good portion of adults are completely unprepared for any kind of financial disaster. The new generation needs better instruction. Parents need to start teaching their children early about personal finance.
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