I recently had a chance to review Beyond Piggy Banks and Lemonade Stands: How to Teach Young Kids About Finance (and They’re Never Too Young). In this book, Certified Financial Planner Liz Frazier spells out the fundamentals of finance. It's easy to follow, and geared towards parents of elementary-aged children to teach them about saving and spending, and provide a foundation on skills that will carry them through adulthood. The activities in the book are engaging and encourage parents and kids to work together, so it's not as much homework as it is time spent with parents and guardians to learn necessary concepts for life.
Also included:
Why can’t I wait to teach my child about finances when they’re older?Shockingly, children can begin to develop money habits as early as seven. Most parents feel there is no way their seven-year old is going to comprehend what a bank does or how interest is determined, but don’t underestimate your child.
It's shocking (and often inconvenient) what children can learn and remember, especially when they don’t seem to be paying attention.
This being said, can you wait until they are 12 to teach them about finance? Sure. But you wouldn’t wait to teach your pre-teen the basics of any other skill most children acquire, such as swimming or riding a bike. Same goes with finance. They’ll be fine if they have a lack of economic knowledge as a teen, but financial management should be seen as another important life skill that needs to be started early. Don’t give them the opportunity to develop bad habits that may be hard to change. Get them started on the right track as they are learning money - you want their early experiences with money to be positive because these will shape their values as they get older.
Won’t my children learn financial literacy in the classroom? And if not, how does this affect how I will teach them about finances?
The short answer is probably not, As ludicrous as it is, finance is not a mandatory high school course in most states. In fact, only 17 states require that high school students take a financial course. And it’s not even on the radar for most elementary and middle schools.
The good news is the subject of financial literacy for children is getting more attention, so there is more of a focus now among local and state policy makers, major federal agencies and the media to push for teaching kids personal finance in schools. But we’re not there yet. Until then, parents are the primary source of information for their kids. And the truth is, even when all schools teach personal finance to students, parents will continue to be the most influential source of information for their kids.
How can busy parents find time to teach children this massive subject?A lot of the teachings are incorporated into things you are already doing, or conversations you would already have with your child. Many of the activities and games are things you can do anytime, or are incorporated into activities you already do every day. Also, a lot of the building blocks needed to understand finance are skills you are already working on, like decision making, delayed gratification and priorities, and encouraging positive attitudes.
Liz Frazier is a Certified Financial Planner (CFP) at Frazier Financial Consultants (FFC), her family’s firm. She holds a Master’s of Business Administration (MBA) from Wake Forest University, and is a member of the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA). She contributes regularly to Forbes.com, focusing on everyday personal finance that anyone can use, with simple and entertaining financial advice. Frazier currently resides in Westchester, NY with her husband and two children. Connect with Frazier on Twitter and Instagram.
Beyond Piggy Banks and Lemonade Stands: How to Teach Young Kids About Finance (and They’re Never Too Young) is available for pre-order on Amazon
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- Easy ways parents can refresh on their own financial knowledge before they begin teaching their children
- Step-by-step guides for parents to teach their children about finances at any age: from the beginner level, intermediate level, and advanced level if their child is eager to learn more about finance
- Smart and responsible spending, and budgeting habits, and how parents can lead a positive example through their own spending habits
- Economics for Kids: how businesses use money, defining the economy, and why it’s always changing
- Finance in the digital age: teaching about finances through the internet, debit cards, banking apps, and trends that will be affecting the next generation
- And more
Why can’t I wait to teach my child about finances when they’re older?Shockingly, children can begin to develop money habits as early as seven. Most parents feel there is no way their seven-year old is going to comprehend what a bank does or how interest is determined, but don’t underestimate your child.
It's shocking (and often inconvenient) what children can learn and remember, especially when they don’t seem to be paying attention.
This being said, can you wait until they are 12 to teach them about finance? Sure. But you wouldn’t wait to teach your pre-teen the basics of any other skill most children acquire, such as swimming or riding a bike. Same goes with finance. They’ll be fine if they have a lack of economic knowledge as a teen, but financial management should be seen as another important life skill that needs to be started early. Don’t give them the opportunity to develop bad habits that may be hard to change. Get them started on the right track as they are learning money - you want their early experiences with money to be positive because these will shape their values as they get older.
Won’t my children learn financial literacy in the classroom? And if not, how does this affect how I will teach them about finances?
The short answer is probably not, As ludicrous as it is, finance is not a mandatory high school course in most states. In fact, only 17 states require that high school students take a financial course. And it’s not even on the radar for most elementary and middle schools.
The good news is the subject of financial literacy for children is getting more attention, so there is more of a focus now among local and state policy makers, major federal agencies and the media to push for teaching kids personal finance in schools. But we’re not there yet. Until then, parents are the primary source of information for their kids. And the truth is, even when all schools teach personal finance to students, parents will continue to be the most influential source of information for their kids.
How can busy parents find time to teach children this massive subject?A lot of the teachings are incorporated into things you are already doing, or conversations you would already have with your child. Many of the activities and games are things you can do anytime, or are incorporated into activities you already do every day. Also, a lot of the building blocks needed to understand finance are skills you are already working on, like decision making, delayed gratification and priorities, and encouraging positive attitudes.
Liz Frazier is a Certified Financial Planner (CFP) at Frazier Financial Consultants (FFC), her family’s firm. She holds a Master’s of Business Administration (MBA) from Wake Forest University, and is a member of the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA). She contributes regularly to Forbes.com, focusing on everyday personal finance that anyone can use, with simple and entertaining financial advice. Frazier currently resides in Westchester, NY with her husband and two children. Connect with Frazier on Twitter and Instagram.
Beyond Piggy Banks and Lemonade Stands: How to Teach Young Kids About Finance (and They’re Never Too Young) is available for pre-order on Amazon
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