Do You Want the Kardashians Teaching Your Child About Money?
If we want to change future generations, parents we need to get more involved. If we are not teaching our kids about money, guess what, they are learning it from Hollywood, YouTube, the internet, etc. Do you really want the Kardashians teaching your child the value of money?
There are two aspects of financial education. There is the stewardship aspect and living a Matthew 6:24 life and then there is the mechanics of money and how it works. It is a no brainer that the school systems should put emphasis on financial education. Unfortunately, that doesn’t look likely to happen. In fact, a 2015 study suggested that the majority of teachers don’t feel like they are even equipped to teach about money.
According to a survey conducted by RBC Wealth Management, 87% of Americans say financial literacy should be taught in schools.
Is that just wishful thinking or a desire to shift the responsibility we have as parents to educate our kids? The survey also showed there isn’t a lot teaching occurring in the home.
|How well have you prepared your children to manage their own money?||Parents with children under Age 5||Parents with children ages 5-10||Parents with children ages 11-15||Parents with children age 16+|
|Not at all||11%||7%||1%||2%|
|Manage on their behalf||29%||10%||9%||5%|
Financial Stewardship and the mechanics are our responsibility to teach as parents. Considering what our kids are up against given the 19 plus trillion dollars of debt, it is going to be imperative that we get on the ball!
There was an interesting note about Millennials. The survey said that “29 percent of Millennials said they learned about investing from their parents and 22 percent said they learned in school. That’s a vastly different experience than that of Baby Boomers, only 10 percent of whom said they received such instruction at home and 9 percent of whom said they did in the classroom.” Recent surveys show that the Millennial generation as a whole might be the most financially responsible generation of all.
As I write this piece I have to ask myself the same question. How much am I doing to educate my own kids? If I were honest, I could do a better job. Just remember one way or another our kids are going to learn about the stewardship and mechanics of money. Do you want them educated by the World or through God’s economy?
NOTE – To aid parents in their conversations with kids about money, RBC Wealth Management-U.S. created a financial literacy resource center for advisors to use with clients that includes various educational materials and worksheets – such as Seven Ways to Raise Money-Savvy Kids available on RBC Wealth Management’s website – that are designed for parents, children 17 and younger as well as for adult children into their 20s.
Bob Brooks is host of The Prudent Money Radio Show, Financial Advisor, and active money manager that consults and helps people plan.