In the 60s and 70s, people did not have to worry about financial education because either the company they worked for or the government would take care of them financially once their working days was over. The rules have changed now. Every individual needs to save up for his or her retirement; that is even if there is anything like that anymore as more and more old people need to keep up with working to make ends meet.
Statistics in the US says that only one in hundred will ever become financially free in their lifetime. 54% are dependent, 16% are still working, 24% are dead while 5% are independent at 65 years after working for 40 years.
Unfortunately our school system teaches children everything else but very little about money. Therefore it is our role as parents to teach our children and wards on the subject of money.
To get this done you can do the following:
1. Help them learn as much as we can about how money works and to start the process of getting our own finances under control.
2. Become good financial stewards and good examples to our kids. Remember kids do not do what we say; rather they do what we do.
3. Pass this knowledge on to our kids through the many daily “teaching moments” and by reinforcing any good financial habits. Repetition is important!
I know some people will wonder, “Why teach kids about money when they are young?”
Educational psychologists say that between the ages of 5 and 14, children make many decisions about life and how they plan to handle their future; money decisions is not left out here. After the age of 14, it becomes harder for parents to teach children new ideas. It is best to teach them when they are young and much eager to learn. If they learn good financial habits when they’re young they won’t have to change to bad financial habits when they are old.
Let’s take the first steps towards teaching our kids good financial habits as early in their life as possible. Together we can start reversing negative financial trends and help guide our kids towards a better financial future!
Gbonjubola Sanni – she is a Public Speaker and Conference Teacher who is passionate about women’s interests, a financial literacy advocate for children who has authored two books on financial literacy for kids. Director of Eadda Kids Enterprises.