I recently read a newspaper article relating that starting this year a financial literacy course will be a mandatory graduation requirement for students in Florida. The Florida department of Education sees great benefits in developing this particular kind of literacy in students. Because you know we think highly of all literacies here at Worlds Awaiting, it will come as no surprise that we agree that financial literacy is pretty significant. Again, as with all literacies, financial literacy is something we build over time, which means that we can’t just start with high school graduation.
It’s clear that we want to see these skills building from early childhood on up. Starting this early to help kids build an understanding of how money works in the world is quite significant, considering research indicates that financial skills are often created by the age of seven. So, if you agree with us and with the folks in Florida, that financial literacy is an important skill for your child’s development, there are lots of ways you can address concepts of financial literacy with your children.
First, it is recommended that parents help children understand what money is and how it’s used. Here experts suggest that a good place to start building this understanding is for children to earn money so they can make their own spending decisions. Another part of this equation is for children to learn how to save money for larger, more important purchases in a way that allows us to have important conversations about needs versus wants. A piggy bank or a trip to the bank and a savings account in the child’s name is a great way to start a habit of saving.
The Consumer Financial Protection Bureau also tells adults to consider that whenever and however we use our money, we are teaching children about it. They recommend open and honest communication that allows us to talk with our children firsthand about our own financial goals and expectations. As children watch and listen to you, they will certainly learn from the financial literacy skills you have already developed as an adult. Here at Worlds Awaiting we know it’s these fundamentals that lay the groundwork for children to have a solid foundation of good financial habits and values that will allow them to deal with money in positive ways.
Check out these links for more information about financial literacy:
By Rachel Wadham, Host of WORLDS AWAITING
At Worlds Awaiting we discuss a wide range of information aimed at supporting adults who want to build literacy skills in their children. We understand that there is no “one size fits all” approach when it comes to children’s development, so the information we provide is intended to reach a wide audience. The books and other resources we recommend will also naturally cover a wide range of interests and subject matter that addresses a range of maturity, reading, and comprehension levels. Since no one understands a child’s needs better than their caretakers, we encourage families to critically select the books and resources that meet their own individual needs and standards.