Teaching Kids About Money During the Pandemic: Money Lessons Kids Need Now More Than Ever Parenting Money Kids
As parents grapple with how to continue their kids’ education during the coronavirus pandemic, many financial literacy resources are going virtual. COVID-19 has forced many of us into a virtual world. When it comes to spending, budgeting and saving habits, parents may need to work a bit harder to engage children in financial socialization, but it is possible. For instance, parents can:
- Share and show how they are saving and budgeting during the pandemic. What expenses have changed? If a parent has lost income, a budget becomes the foundation of the family’s spending and should be shared with everyone.
- Open online bank accounts for children to help them understand interest, how to read an account statement and other money lessons. Understanding how interest compounds, investing basics and gross and net income are among financial lessons high school students should know. Parents can start earlier teaching their kids about budgeting, the impact of financial decisions, earning and spending money and even understanding debt and credit cards.
- Engage kids in developing a Family Mission Statement (FMS). This is a great project for families to connect and reflect on what they truly value. Once they create the FMS, they can use it to make financial decisions and as to refocus what is important. (Download a free template for a Family Mission Statement.)
If anything, I hope this pandemic underscores the importance of financial knowledge and being prepared. Good habits create good outcomes. Teaching your children good financial habits today, before they incur debt or even earn income, will set them up with a strong foundation to sustain whatever life throws their way.
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