All around the country, kids are donning their backpacks and heading off to learn about geology, geography, music, math, and everything in between.

 

But there’s something most kids don’t learn in school.

 

We are referring, of course, to financial skills.

 

That responsibility usually falls to parents and grandparents. But what exactly should kids learn when it comes to finance?

 

About ten years ago, there was an article in Forbes magazine about which financial terms kids should learn by a specific age.1

 

Obviously, every kid is different, and there’s no one-size-fits-all approach to teaching financial literacy. But I think the recommendations made in the article are a good starting point:

 

1. Saving (age 4+)

 

2. Budget (age 8)

 

3. Loan (age 8)

 

4. Debt (age 8)

 

5. Interest (age 8-10)

 

6. Credit (age 8-10)

 

7. Taxes (age 10-12)

 

8. Investment (age 10-12)

 

9. Stock (age 12+)

 

10. RRSP (age 14+)

 

11. Credit Score (age 15+)

 

When kids learn terms like these, something truly magical happens: They start paying attention.

 

They pay attention when Grandma reviews her quarterly statements that come in the mail.

 

They pay attention when they hear their Uncle talk about his credit score. And they understand why Mom says, no, they can’t just buy that thing they don’t need in the checkout stand — it’s not part of their budget.

 

And the more they pay attention, the more they start to think about how finance impacts their own lives. How if they save for a few weeks or months, they can buy that game they wanted instead of blowing their money on candy. How if they put some of their money in the bank, they get a letter every year that shows what they earned in interest.

 

How if they start planning ahead now, they can eventually drive the car they want, go to the college they want, and more.

 

Here with The Omell Financial Group, we believe strongly in the importance of providing financial education to our clients’ children and grandchildren. We’re always thrilled when clients bring their kids in with them for an appointment or ask us to explain something to them. Our mission is to help everyone we know be able to feel comfortable with money and confident about their financial future…and by helping young people early on, we can ensure the next generation feels very confident indeed.

 

As another school year begins, we think it’s good for all parents and grandparents to remember that saving can be just as important as science. Budgeting is just as critical as biology. And finance is certainly the equal of learning French. Teaching basic financial concepts to children is one of the most important gifts any parent or grandparent can give.

 

So, if you have any young people in your life that need to get started with the basics of financial literacy, take the time to start talking about it with them. And as always, please let us know if there is any way we can help!

 

 

Sincerely,

 

The Omell Financial Group

 

Sourced from Bill Good Letters Library

 

1 Jennifer Ryan Woods, “11 Financial Words All Parents Should Teach Their Kids,” Forbes Magazine, June 8, 2015.

http://www.forbes.com/sites/jenniferwoods/2015/06/08/11-financial-words-all-parents-should-teach-their-kids/5/#122578472922

 

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This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.

 

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