WRGB — April is Financial Literacy Month. Financial experts say teaching kids about money early on can help them become financially independent as they grow up.
According to an annual survey conducted by the Global Center for Financial Literacy Excellence, approximately 50 percent of adults lack financial literacy.
“After you teach them not to steal or hit people, this is the most important thing. You have to teach them how to handle money, because they will be making financial decisions every day of their lives. “And it really influences how you make decisions about your life.” “It’s about the quality of your life for the rest of your life.” said Greg Marcet, CEO of teaching app BusyKid.
The most important money lessons parents should teach their children are:
“The first thing is to break the cycle of earning and spending, which I think many kids naturally want to do. Breaking this cycle and promoting the balanced financial approach that I’m talking about is important. “Hopefully, they save, invest, share, and spend a little bit every time they get an income. If they do that every time, they’re set.” .
“I think the second thing is to learn to invest and do it often. Consistency is very important in investing. If you can do that consistently, you’re setting yourself up for success,” Marcet said. said.
“The third thing is to learn how to share. It may seem counterintuitive when you’re trying to save money or give money away, but it makes a difference. “It’s good and helpful to understand mentally that the world is a bigger place than just you,” he said.
“Fourth, understand that money is invisible, just like it’s no longer something you carry around in your pocket or wallet. It’s not a wad of bills. Money is now on a screen. Once you understand that “if you swipe this card, the numbers change and you lose money,” everything changes once you learn that. .