Knowledge

Why, when and what to teach students about money and financial management...

Vinay Singh
Why, when and what to teach students about money and financial management...

In a rapidly changing world, teaching your students about managing money has become more important than ever. In this article, we discuss how to raise money-smart kids. We also discuss why, when and what to teach students about money and financial management.

Why teaching financial skills is important?

Giving our kids a good foundation and teaching them about money matters is critical for their overall personal development. Showing students the basics such as how to budget, spend and save will establish good money habits for life. Teaching kids the value of money through real-life situations and examples will help them understand where the money comes from and how it is earned.

When should you talk to your students about money?

The financial literacy experts we spoke to told us that there's no right age to teach financial literacy. However, parents and educators should expose their kids to money as soon as they can. 

Beth Kobliner, author of the New York Times bestseller Get a Financial Life, says children as young as three years old can grasp financial concepts like saving and spending. A report by researchers at the University of Cambridge commissioned by the United Kingdom’s Money Advice Service revealed that kids’ money habits are formed by age 7. In the book Rich Dad Poor Dad, the author Robert T Kiyosaki gets money education from his Rich Dad at the age of 9 and goes on to become one of the richest men in Hawaii.

Which money concepts to teach for different ages?

Here are a few recommended activities / concepts to teach students of different age groups about money related matters:

5 years to 9 Years

- Coin identification game
- Trip to an ATM
- Trip to a bank
- Visit a supermarket
- Using a piggy bank

9 Years to 12 Years

- Charity fund-raising
- Make a budget for pocket money featuring savings and expenses
- How to earn money activity
- Show what household things cost
- What is a savings account?

12 Years to 16 Years

- How a credit card works
- What is online shopping
- What is investing?
- Opportunity cost
- Advertising and how it affects spending

These are just a few recommended activities suggested by our experts. Our next section provides a more in-depth solution and resources for educators and parents.

Which are the best resources for teaching kids about money & finances?

The following books and websites provided some of the best tips and resources for Financial literacy education:

Rich Dad Poor Dad by Robert T Kiyosaki

Get a Financial Life by Beth Kobliner

Personal Finance for Dummies by Eric Tyson

Dhangyan - financial literacy e-learning
http://dhangyan.com/

The National Centre for Financial Education (NCFE)
http://www.ncfeindia.org/

ASIC's MoneySmart Teaching
https://www.moneysmart.gov.au/teaching

NEA's resources for teaching financial literacy
http://www.nea.org/tools/lessons/resources-for-teaching-financial-literacy.html

We hope this article helped you in the search for advice on teaching finance and money management. Do share your comments and thoughts.

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