Why it's Never Too Early for Financial Education
Why it’s Never Too Early for Financial EducationFinancial education services can help you expand your knowledge of important topics like saving money, investing and planning for retirement. However, just because some of the knowledge may be used in later stages of life, financial education is not just for adults. It is never too early to start learning about money management, as decisions you make now can positively or negatively impact your future.
5 Fast Facts on Financial EducationThese five quick facts will shed some light on the state of financial education for both children and adults:
Nearly half of parents don’t teach their children anything about long-term investing. Many of these parents teach their kids about saving money, but they generally focus on short-term practices like putting cash into a bank account. While useful, this knowledge won’t help them prepare for big life events or retirement. Parents may have a misconception that you have to have a lot of money to invest, when in reality you can start small and your money will grow over time.
1. 42% of Parents Don’t Teach Their Children about Long-Term Investing
Statistics reveal that most parents teach their kids something about money before they become adults. However, it appears that many parents aren’t providing enough education or are neglecting some important topics. Talking to children about money can be an uncomfortable task, so it’s no wonder that many adults rate themselves poorly on financial literacy.
2. Parents Don’t Teach Their Kids Enough about Money
3. Just 16.4% of High School Students Have to Take One Personal Finance ClassAccording to 2019 data, only 16.4% of high school students in the United States are required to take a course on personal finance. Many other students have the opportunity to enroll in these courses, but the classes are optional and might not reach the students who need them the most.
4. Kids Can Start Understanding Value at Age Seven, but Few are Taught Financial BasicsDo you want to educate your children on finance, but you’re not sure when to start teaching them about concepts like value and money? According to the University of Cambridge, you should start around the time your kids turn seven. Researchers found that children can grasp basic concepts of value at or around this age.
5. Almost Half of Adults Give Themselves a Grade of C or Lower in Financial LiteracyDuring a survey conducted by the National Foundation for Credit Counseling, researchers asked participants to rate their financial knowledge using the traditional letter-based grading scale. Nearly half of respondents gave themselves a grade of C or lower, which demonstrates that far too many people are not confident in their ability to manage their finances.
How You Can Educate Yourself and Your ChildrenIf you want to expand your financial knowledge or give your children a better opportunity to enjoy a lifetime of good financial health, we suggest that you take advantage of these resources:
Private Financial Education ServicesPrivate financial education services are a great way to boost your financial knowledge, especially if you did not take any finance courses in high school or college. These services range in cost from free to quite expensive, which means that you can find services to meet your needs at any price point.
One of the best places you’ll find free financial education services is through your local credit union or bank. At SDCCU, we offer Financial Wellness Wednesdays, a free financial education program that aims to help improve the financial health of members of the communities we serve. To learn more about Financial Wellness Wednesdays and view the upcoming schedule, visit sdccu.com/fww.
Financial Education BooksThere are many great financial education books out there. You can find books to cover virtually any finance-related topic, including investing, saving, getting out of debt or improving your financial health.
There are plenty of books on finance for children, too. You can pick up a few age-appropriate books to introduce your children to the basic concepts of saving, spending and investing. Another resource for children to learn about money and business is through SDCCU’s Biz Kid$ program. Visit sdccu.com/bizkids to learn more about this program.
When exploring financial education books, be wary of any that make outlandish promises or appear gimmicky. If the title of a book is flashy and sounds too good to be true, it will probably not teach you any solid financial concepts.
High School or College CoursesHigh school courses are great resources that address finance for children and young adults. These courses can help your children navigate the many financial challenges associated with early adulthood, including deciding whether to take on student loans.
If your child’s school does not offer a personal finance course, you can encourage them to enroll in one if (or when) they attend college. You could also consider enrolling in a finance course at your local college or university, even if you already have a degree.
You can select a course that aligns with your interests and financial goals. During the semester-long course, you will be able to dive deeply into advanced topics like investing, retirement planning and more.
How SDCCU Can Help You Expand Your Financial KnowledgeSDCCU is committed to helping our members achieve their financial goals by connecting them with the right products and services. If you have a question about one of our financial products, we invite you to schedule a meeting with a Financial Service Representative.
During this meeting, you can ask questions, express concerns and explore your options. Your Financial Service Representative will provide valuable information about products like credit cards, individual retirement accounts, auto and home loans and much more.
Visit our Financial Knowledge Blog to learn more tips on setting up a solid financial future or join us for Financial Wellness Wednesdays.