As mothers, we spend countless hours teaching our children, but there’s another skill we should be focusing on: money management.
As mothers, we spend countless hours teaching our children about good manners, stranger danger, and the value of hard work. All of which will help them survive in the real world. But there’s another skill we should be focusing on: money management. According to a 2015 evaluation conducted by the Program for International Student Assessment (PISA), approximately one out of five 15-year-olds in the U.S. doesn’t meet the baseline for financial literacy, meaning they lack a basic understanding of bank accounts, credit and debit cards, and loans. Only 10% understand complex financial issues such as taxes.
Although discouraging, these numbers aren’t surprising. Money is one of those taboo topics that adults don’t like to talk about so it doesn’t come up in conversations with our children. However, we have to put our discomfort aside for the sake of our loved ones and take the lead in helping them become financially savvy. Having a strong foundation that’s based on setting goals, saving money, and avoiding debt may set your children up for success throughout their lives. As they transition into adulthood, most of their major life decisions will involve money, whether it’s managing taxes, taking out a mortgage, starting a business, saving for retirement and higher education, or estate planning. Plus, we might not be able to rely on schools to do it for us. According to the Council for Economic Education, only 17 states currently require students to take a personal finance class and only slightly more (22) require an economics class.
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