Back To School
It’s back to school season! All around the country, parents are buying or have bought new backpacks and school supplies, anxious to get their children ready for the school year. Kids have squeezed in that last bit of summer fun as their days are given over to geology and geography, music and math.
But as important as those topics are, do you know what skills most schools don’t teach?
I’m referring, of course, to financial skills.
It’s hard not to overstate this fact: learning the basics of good finance is just as important as learning “how to solve for x” or “what year Magna Carta was written.” That’s because everyone, regardless of who they are or what they want to do for a living, will have to take control of their finances at some point in their life.
Jennifer Ryan Woods had this to say in a Forbes® magazine article:1
Because most schools aren’t teaching finance, the responsibility falls to parents. But many parents are reluctant to broach the subject, often because they don’t feel qualified or they think talking about money will make their children worry. In a recent study, 72% of parents reported at least some reluctance talking to their kids about finance. But that doesn’t mean they don’t want their kids learning it—91% believe it’s appropriate for kids to learn about financial matters in school and 75% said there should be a personal finance requirement to graduate.
Some schools do have a personal finance class, yet it is still important that parents’ teach financial skills to their children as well. Grandparents you can play a role in this too. Christy Warner says in a US News article “73% of grandchildren surveyed say their grandparents have an impact on their saving and spending habits.”2 Fortunately, it doesn’t have to be difficult. The Forbes article quoted above suggests that simply helping kids understand basic financial terms is a good place to start. You should definitely read the full article, but in the meantime, here are the 11 concepts mentioned in the article:1
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- Saving (age 4+)
- Budget (age 8)
- Loan (age 8)
- Debt (age 8)
- Interest (age 8-10)
- Credit (age 8-10)
- Taxes (age 10-12)
- Investment (age 10-12)
- Stock (age 12+)
- 401(k) (age 14+)
- Credit Score (age 15+)
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So, as another school season begins, remember: saving can be just as important as science. Budgeting is just as critical as biology. And finance is certainly the equal of learning French. That’s why teaching basic financial concepts to children is one of the most important gifts parents and grandparents can give.
One last thing. Here at Wealth Advisors, our door is always open to helping parents and grandparents educate the next generation on how to pursue financial success. So, if there’s ever anything we can do to help you pass on the skills you’ve learned, please let us know.
Have a happy school year!
