Do you know anyone who’s struggling with managing their personal finances?
You probably do. One in 4 adults (25%) do not pay their bills on time, and almost 1 in 3 millennials (32%) feel not at all or not very knowledgeable about how their credit score is determined, according to a survey from the National Foundation for Credit Counseling.
Clearly, people need to know more about personal finance. The good news is that it’s easy to learn — even at young ages. In fact, the more kids learn about money, the better they manage it when they become adults. Indeed, high school students who take personal finance classes have better than average credit scores and lower debt delinquency rates on credit accounts as young adults, according to a report from the Financial Industry Regulatory Authority.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Unfortunately, only 17 states require that high schools teach personal finance, says the Council for Economic Education. As a result, the average high school graduate lacks basic personal finance skills, causing many to struggle throughout their lives with budgeting, saving, borrowing, spending and investing wisely.
Because schoolteachers aren’t providing this education to our kids, you must. That might sound a bit intimidating, but teaching personal finance to youths — even kids as young as 3 — doesn’t have to be daunting. Here are some ways you can improve the financial know-how of the young people in your life:
Start now
Begin casual conversations about money. There are lots of opportunities.
- When preparing your tax return, talk about the role of taxes in society.
- During the holidays, talk about giving to charity and those in need.
- Trips to the grocery store or mall can lead to natural chats about spending, credit cards, delayed gratification and the need to make choices.
The most important thing to do is to just start. It’s never too early to help children become financially savvy.
Read and listen
There are lots of books, podcasts, blog posts, TV and radio shows, and even apps that provide low- or no-cost financial information. For example, I’ve dedicated my career to teaching consumers about personal finance, through my weekly radio show and online education center. And last year we published our first children’s book on money for 4- to 8-year-olds, called The Squirrel Manifesto, which helps you have healthy conversations with children about money and educate them on the four fundamental money principles: tax a little, spend a little, save a little, give a little.
Ask for help
While it can feel uncomfortable to talk candidly about money, having a conversation with friends, family or a financial adviser can be incredibly helpful. When someone comments or asks about financial issues, take the conversation seriously, and invite a financial professional to help explain complex topics.
Educate children early
It’s not enough that you educate yourself about personal finance. You must also help children form healthy relationships with money.
By starting to teach people when they are young, we can help the next generation enjoy a healthier relationship with money throughout their lives.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Five Things to Consider Now If You Want to Retire in 2026To retire with confidence in the year ahead, tackle these essential tasks right now.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy InvestingInvesting in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's ExecutivesFeeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have MillionsPrivate market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard AboutTiming is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional StrainEarly conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.
