As parents, we want our children to grow up to be successful adults with full, stable lives. While every child’s path to success is unique, financial stability is a key part of it. We want to help our sons and daughters avoid pitfalls like money worries, debt, or living paycheck to paycheck — but how?
Schools don’t teach about money
Financial literacy is, unfortunately, not part of the curriculum at most schools, which are geared more towards making children future employees than future entrepreneurs. As Ten Key owner Stephanie Robl points out, ”Schools don’t teach our children how to become financially solvent. And between school, homework, and activities, parents have precious little time to teach our kids about finances.”
Rich Kid, Smart Kid
While it may seem daunting to have to fill in these educational gaps at home — and you can already envision the eye-rolling you’ll get as you try to approach the subject — don’t fret! Stephanie recommends the book Rich Kid, Smart Kid by Robert Kiyosaki and Sharon Lechter as a guide for building your children’s financial literacy (and perhaps even your own, along the way.)
Learning through play: great games that teach about finances
The authors of Rich Kid, Smart Kid emphasize that one of the best ways to teach your child about finances is through play. Try to give a lecture on investing or saving and you’ll likely get blank stares, but break out a game and you’ll get an interested, engaged kid! Board games like Monopoly or Kiyosaki’s own Cash Flow offer a fun, family-friendly way to help your child learn about money, investing, and entrepreneurship. The Rich Kid, Smart Kid website is kid-friendly and has lots of interactive games and even a guide for grownups.
Financial literacy for parents and kids
Just as it’s difficult to help your child with math homework you don’t really understand (and we’ve all been there!) you need to educate yourself on finances in order to pass it along. Start with Rich Kid, Smart Kid, and also try Kiyosaki’s other book Rich Dad, Poor Dad to brush up on your financial know-how for yourself and your children.
In conclusion, strong financial literacy enables us to make better decisions and to teach our kids to do the same. As the Rich Kid, Smart Kid authors say, “You don’t get rich going to work at a job every day. You get rich at home where you decide what to do with your money. It is what you do with your money after you earn it that makes the difference between rich and poor.” Ten Key, Inc. is always here to help, too. Check out our blog for articles on topics like balance sheets, cash flow, and tax tips to increase your own financial literacy.