- Up to $40 trillion may be transferring between generations over the next 30 years.
- It’s never too early to teach young people the importance of handling money responsibly.
- Below are different financial literacy strategies for preteens, teens and young adults.
Contact us at 800-480-7913 | email@example.com if you have concerns about your children or grandchildren’s understanding of money.
Hard to believe it’s that time of year again: back-to-school shopping season. But the most important tool your children need in school this year is not something they can buy at the store. It’s knowledge about money and money habits. Why am I so big on this? Because an estimated $16 trillion to $40 trillion is going to transfer between the generations over the next 30 years.
That’s an enormous amount of wealth, and we all know that money is ubiquitous in our society. It’s with us emotionally, mentally and socially, so it’s so very important that young people learn really good money habits early on. Otherwise, money’s going to control them. There’s abuse and misuse, and there are also all sorts of money addictions. You see it all over the place all the time; it’s horrible.
So there’s a huge change going on in this country and the next generation needs to be prepared to understand money. I’d like to break this down into three age categories:
- Age 4 through the preteen years. With kids this age, it’s about getting them to understand money viscerally. Have them touch paper money and use it and start to experience how it works.
- Teen years. When kids get to be teens, you should be trying to put money into accounts for which they’re using debit cards and other forms of payment. This way they start having some control, and they can learn the difference between instant gratification and delayed gratification. They need to learn how not to overspend, so they can develop good habits before they get out in the real world. If possible, this is the time for you to let them fail a few times.
- Young adults. As young adults, they need to learn the basics of money management so they can thrive, not just survive, out in the real world.
Now, you can read the chapter about financial awareness in my book Changing the Conversation, where I go through each stage and provide more in-depth information.
Obviously I’m very passionate about this issue. It is so important to make sure our young people get off on the right foot financially. Trillions of dollars are going to show up in their collective hands before you know it, and we need to make sure they can handle the responsibility and make really good decisions about their money.
If you need help in this area, contact us at 800-480-7913 or firstname.lastname@example.org, and let us know how we might be able to help you address these issues for your children or your grandchildren.
We’d love to help you. Until next time, enjoy. Gary
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