5 Ways to Teach Financial Literacy to Kids
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Have we ever overspent at a shopping mall? Or, know someone who is struggling with their EMIs? Chances are, we mostly do.
Now, as we begin to discuss financial literacy for kids, let us know of a popular fact: ‘Nearly 60 percent of Basketball players in the USA go broke within 5 years of their retirement.’ Let us be informed, these are contracts worth millions of dollars per season that we are talking about.
What causes such painful downswings for these players then?
- Lack of financial literacy, downright.
Lavish lifestyles, relatively short careers,and overspending are some reasons that go along with one central reason: lack of financial literacy.
Coming back to talk about financial literacy for kids, let us discuss how best we can nurture financial intelligence right from their roots.
5 Ways to Teach Financial Literacy to Kids
1. Involve as much as Possible
“Tell me, I forget;
Teach me, I remember;
Involve me, I will learn.”
The above quote from Benjamin Franklin is pure gold, isn’t it? It is perhaps diamond when we relate it to teaching financial literacy to kids.
Whether festive shopping or a big investment, kids pick up many things from how the elders approach a certain situation. For starters, when you next go out for shopping, set a budget and involve your child in the budgeting process.
Now when you are set to start shopping, the child has that much more reason to see how his/ her efforts in budgeting are helping you.
Now, at this point, an ice cream for both of you is well deserved, no?
2. Have Regular Review Sessions
This can well be a fun activity as much as it is an important one.
Consider involving your child in reviewing your weekly/ monthly expenses. While doing this, ask your child to take the role of your financial advisor. Now, encourage him/ her to advise you in their own ways.
Since the child needs to advise you, he/ she will make that effort to read through the accounts.
Remember, the objective here is not to expect a lot from the child. It is to engage and inspire financial literacy.
Do give us a call if this activity leads to something interesting. We’d love to know.
3. Open Conversations
Ensure your kids can talk to you comfortably about finances. You may not want to accept or downright reject anything that they say. Simply being able to listen deeply is a great way to understand their thought process.
You sure will course-correct where necessary, won’t you?
For instance, you can initiate a conversation about different chocolates. During the course of the conversation, you can discuss why they are sized differently, if prices depend on sizes and so on.
4. Play Games Together
Teaching financial literacy to kids does not have to seem like answering a 15 mark question in an engineering exam. For all we know it can be much simpler than that. We can very well enjoy the process of such teaching by playing a bunch of games. Here are a few games that you may love:
Fun Game Suggestions to Teach Financial Literacy for Kids
One of the most popular games, it involves buying properties, collecting rent, paying fines and building assets. Also called ‘Business’, the game evokes children to talk in a language of business and transactions.
You may have read/ heard about the book Rich Dad, Poor Dad. Cash Flow is created by the author of this book, Mr. Robert Kiyosaki. The game requires players to keep a positive cashflow, create additional money-making options and think about closing smart deals.
iii The Game of Life:
Just as engaging as Monopoly and Cashflow, this game brings the whole family together. Upto 6 players irrespective of age can play The Game of Life. As the game progresses, one travels from childhood to old age having to make various important decisions along the way.
If history excites you, be sure to know that this game is being played since 1860.
5. Be a Role Model:
Children follow nearly everything that we do as parents or guardians. Our behavior, attitude towards life and responses influence a large part of their childhood. In this context, let us take it upon ourselves to practice all that we preach and do it well.
Financial Literacy for Kids from Grade 1 at Orchids the International School
Why should financial literacy be taught in colleges and universities only? Today, with kids starting to take over the world with groundbreaking flair, is it not prudent to sow the seeds of financial literacy at the roots of their life itself?
That is why, at Orchids The International School, we nurture financial literacy from Grade 1. Come let’s discuss how we do it and, more importantly how much fun we are having while doing that.