May 2022 | Lina Banytė-Surplienė
When I encourage parents to spend some time teaching kids about money, I frequently got asked whether I plan to make trainings to kids directly.
I see the point. We, parents, are so busy with all the responsibilities at home (and at work) that we do not want another chore to be added to the list.
Another desire which parents have is that kids learn the basics of financial literacy at school. It would be perfect if kids come home and start asking about money themselves, wouldn‘t it?
However, there are a few reasons why this „plan“ might not work as expected.
1. Parents are the most reliable source of information about finances
Research shows that neither friends, television, radio, nor teachers are as reliable source of information about finances as parents are. Children who talk to their parents about money at least 1-2 times per week showed way better results in financial literacy tests than those who talked less frequently.
2. When teaching kids about money we show the values that we have
When we teach our kids about money, we do not only transfer the knowledge, we also transfer our values.
Money is a powerful tool. This tool could be used to raise materialistic and weak-willed people. And the same tool could be used to raise people that are in charge of their lives and good decision makers.
If the same tool – money – could get so different results, wouldn‘t it be good to have impact on the values that are transferred to kids?
How do we show our values to kids? Kids observe us when we make decisions to buy or not to buy, when we decide to save or not to save, or when we donate our money for the important purpose. If we explain to kids the choices we make, they get a very clear understanding of what is essential to us.
That is the reason why we cannot delegate this to nobody.
3. Parents are nearby when kids get real-life experience
Teachers have the possibility to talk about money at a specific point of time in the specific place, i.e. during the lessons of financial literacy. The problem is that kids do not encounter real money problems during the lessons. That is why it might not be easy for kids to absorb all the information that they receive.
We, parents, on the contrary, have the amazing opportunity to be nearby when our kids want to buy something, when the questions about money emerge in their heads (why do neighbours have more money that we do? How much do you earn?) and when they receive money from grandparents (and are not sure what to do with them). These are unique moments when our kids are open to our words.
Teachers would never have such luxury.
4. Our example is more important than theory at school
Finally, parents‘ example is what sticks – not the words heard at school.
That imposes a huge responsibility on us, parents. But on the other hand, it also provides us with the wonderful opportunity to raise our kids the way we want.
It might also require us to change our habits a bit. But that‘s not so bad, is it? If you have not got it yet, get your free copy of “10 signs you are raising money smart kids” here: