Kids and Money: An Introduction

Teaching kids about money management is crucial for helping them grow up successfully—but talking about money can also be very difficult for parents. How do you teach your children and teenagers to earn, save, give, and spend well when they’re bombarded with conflicting messages on how to responsibly use their money? And in a country in which earning and spending habits are intensely personal, how do you bring up the topic of kids’ money management in the first place?

Did You Know?

• The average financial literacy score for high school students is an F. This score has fallen to its lowest level ever.¹
• While 75 percent of adults say it’s important for adults to give financial guidance to children and teenagers, only 36 percent of adults actually do so.²
• Teenagers’ financial literacy increases significantly when they go to college; however, only 25 percent of Americans graduate from college, leaving 75 percent ill-equipped to make financial decisions.³
• The more Developmental Assets that kids have, the more likely they’ll make smart money management choices. While 72 percent of young people who have 31 to 40 Developmental Assets save money, only 27 percent of young people with 10 Developmental Assets or less save money.⁴

Fortunately, you can improve your kids’ personal financial literacy by teaching them key financial skills, talking about money and the values that guide money decisions, and giving them opportunities that help improve their money management skills both now and in the future. It can be difficult to start, but you’ll be doing a great service to your children by talking to them about money and helping them develop into financially savvy consumers.