Blogging Makes Sense
Financially Smart Kids: Summed up in One Word…
Habits. Or better yet, summed up in three important words: successful lifelong habits.
Kids form habits – good and bad – at an early age. Their habits, including money habits, are pretty well set by age seven. That’s why financial literacy for young children is so important. Kids need to learn the financial knowledge about good money skills before the successful lifelong habits can be formed.
And that job can’t be taken on by schools or financial literacy programs alone. Parents are the number one influence on how children deal with money, so kids need to gain hands-on financial experience at home with the support and encouragement of their parents. Let’s take the example of healthy eating habits. Children learn about healthy eating based on the Canadian Food Guide in schools. Kids are taught to eat more fruits and vegetables and balanced meals but if the parents are not reinforcing the same message at home and the fridge and pantry at home are not stocked with nutritious foods, then that knowledge is wasted. The kids’ healthy-eating knowledge doesn’t become a lifelong habit of healthy eating.
At Knowledge Makes Cents, kids as early as junior kindergarten gain financial knowledge and skills through fun games, activities and role playing. Children as young as 3 years old already understand the purchasing power of money. We teach them the flip side of the money equation (i.e. earning vs. spending) so they can build a balanced knowledge about money. Just as importantly, our parent workshops help adults become the best “Chief Financial Parent” at home.
Habit is defined as “a settled or regular tendency or practice, especially one that is hard to give up.” The partnership of financial literacy and hands-on experience is key to kids forming successful lifelong money habits. And with great financial habits under their belts, kids (and parents alike) can get on track to their own financial freedom.