Great article here on how parents should be having money conversations with kids. This is a great arena for financial services providers to explore and think about how to lead those conversations, establishing themselves as leaders in their communities in a digital age.
The article says that for the most part, money is a somewhat taboo subject many societies and that we do not do all the things we need to do to flip that. The opportunity is kids growing up with a healthy attitude and skill set around money.
Despite what some think, its very much up to Parents to drive the agenda here as schools aren’t doing well nor should they be relied upon too. We all have different beliefs and systems about money and few schools are compelled to act; only 17 states in the USA require high school students take a personal finance class.
So what should the routine be?
It turns out, that like most things, its about having conversations, not burying it because we’re uncomfortable talking about it. That will just continue the feeling of it being uncomfortable for our children
- For kids between 5 and 9 parents should start with teaching a basic understanding about money by explaining what it costs to buy something and helping he younger kids with things such as counting money, talking about the history of money, and having them divide their allowance into savings, spending and giving.
- For kids between ages 10 and 15 it’s recommended to begin introducing budgeting basics, being introduced to banking and taught how to manage their own financial lives. Introducing some investing basics is also a good idea, providing your kids a small amount of money to invest, or you can create a mock investment account that they can build and manage over time. Interest compounding is a good idea here.
These are the sweet spot ages for Chore Scout and where financial providers can start thinking about how they facilitate these behaviours and learnings, taking the lead and building sustainable communities and customers. We’ve got some of these principles covered within the platform and certainly some food for thought in terms of futures.