Research from the University of Cambridge found that kids as young as 7 years old have a basic understanding of financial concepts. Discussing finance can be a difficult topic for some parents. They do not want to expose their kids to the sometimes harsh reality of finance. However, parents cannot rely on schools to teach their kids the financial skills they’ll need to prosper in the future.
Only 16.4% of high school students are expected to take a personal finance course. This is a stunning stat considering in a survey conducted by student loan service Nitro, 75.7% of millennial students think personal finance courses should be mandatory.
There is a strong connection between financial literacy and financial well-being. The more a child knows about finance, the more they’ll be able to save and earn for their future. The tough financial situation the majority of people find themselves in could be avoided through basic financial literacy. Unfortunately, life takes over. We get jobs, start families, and have too many tv shows to catch up on! Everyone reaches a certain age where learning new skills becomes a chore, even if those skills could dramatically improve their lives. That’s why it is so important to teach these financial literacy skills to kids as soon as possible!
Students and kids who are enrolled in financial literacy courses take advantage of government grants when paying for college and rely less on high interest loans and credit cards. Financial literacy skills are also positively connected to building wealth and assets at age 25.
So is it ever too early to start teaching financial literacy skills? We don’t think so! Getting kids involved in their finances at a young age allows them to form good budgeting, saving, and investing habits that they will carry with them into adulthood. This can make a generational impact on a family. Kids who grow up valuing financial literacy become adults who hold the same values and want to pass them on to their children. There is no quick crash course in financial literacy. It is a lifelong journey. And with the proper foundation, your kids will be able to successfully navigate this journey. The earlier you start, the easier it is.
Right now, Explorer Hop is offering a FREE demo session on June 26th for our award-winning Camp Millionaire program. Throughout the summer this camp will build a foundation of financial knowledge your kids will take with them for the rest of their lives. Mutual funds, risk management, taxes, and earnings valuations are just some of the concepts kids learn in Camp Millionaire. And of course, we specialize in making finance fun! At the end of the camp, our students have more financial knowledge than 95% of the adult population. So they might be able to teach you a thing or two!