Teaching kids about money is crucial for their future. Many adults wish they had learned financial lessons earlier in life.
Did your school curriculum include money management? We’re not referring to math classes; we mean personal finance — the skill of handling money wisely. While some individuals were fortunate to learn from family members, many never encountered personal finance education prior to their first bank experience.
This gap is a significant issue, but thankfully, efforts are underway to address it by educating children about finances.
By imparting financial knowledge, we equip children to navigate an ever-changing economic environment. Such education can greatly influence their earnings potential and savings habits moving forward.
Next Gen Personal Finance reports that as of this year, eighteen states require some form of personal finance instruction for students before graduation. This increase means that 40% of high school students will receive personal finance education in 2023, a rise from just 16% in 2018.
But what financial topics are being taught? Courses focus on helping students make informed financial choices, such as avoiding impulsive investments in trending crypto stocks, and understanding the implications of their decisions.
Yanely Espinal, author of Mind Your Money: Insightful Stories and Strategies to Help You Reach Your #MoneyGoals, dedicates herself to educating youth about money, ensuring they learn essential lessons she missed. Growing up in a tight-knit family of nine in Brooklyn, Espinal often felt that money was scarce. “Those early experiences shaped my belief that there was never enough money. It was always a struggle,” she reflects.
In college, Espinal found herself accumulating credit card debt to maintain appearances. “I felt I couldn’t repeat outfits or skip on my nails, hair, and makeup. I never considered if my spending aligned with my values,” she admits.
LISTEN: Teenagers And Money, More Powerful Than You’d Think
In the Mailbag segment, we hear from someone mentoring a teenager in financial management, seeking guidance on next steps. We also discuss a listener contemplating divorce and whether now is the right moment to collect Social Security. This week's money tip highlights that neglecting your finances could cost you $2,000 annually. If you need help with budgeting, sign up for our FinanceFixx session on January 23rd.
