Financial literacy and a financial education go hand in hand. The truth is that understanding finances and how it affects you starts at an early age but must managed throughout time and especially as you get into an older age. While the actual understanding of financial information changes with age & time, the need for such understanding remains steadfast. Acquiring financial literacy at a young age can set a nice foundation for financial decisions going into the future and maintaining your financial literacy throughout age allows you to make your best decisions as you live out your future and into retirement. Throughout age, there are key core concepts that have to do with what it means to be financially literate and as an older adult, those key concepts build on each other into refined ones. This article goes over what those concepts are – for the youth and older adults – so no matter what the situation, you can learn a thing or two!
What to Teach Children
What it means to Earn Earning as a child can have an effect on their future. Inspire your children to earn by rewarding them for odd jobs around the house. If they go the extra mile, reward them proportionately! The goal is to make your kids eager to earn. As a child, CEO of Camping World and star of CNBC’s show, “The Profit”, used to manage lemonade stands. He’s been vocal that his experiences as a child introduced him to concepts that have made him successful in the future. Perhaps they’ll forgo asking for that lollipop at the checkout line!
What it means to Spend If you reward your child for jobs around the house, take money from their pay if they want to buy something. Have them understand that expenses have an effect on income. This way they’ll know what it means to give away their money.
What it means to Save Often, kids want an expensive item to play with. Let them know that in order to get it, they’ll have to save! By rewarding kids for their work, you’ll give them an idea of what it means to save and how long it will take to get things. They won’t take it for granted!