5 Things We Learned During Financial Literacy Month
America is a C-student when it comes to money. Inside Sources reported that our country’s lack of financial literacy is to blame, with most schools providing kids with exactly zero education about money. “Only 27 percent of young adults know basic financial concepts,” said Fidelity’s Pam Everhart. At Biz Kid$, we’re determined to make that number 100%. We’ve even created an entire page dedicated to Fin Lit basics.
Kids have a distinct advantage when it comes to saving and investing. As on George Washington University professor put it to the Mercury News, “Young people need financial literacy because they have a great asset: time, and they should use it to start on the path to financial security and success.” The secret? Compound interest.
Sometimes, helping your kids most means letting them learn the hard way.
The Courier Journal explained it this way: “Spending and saving decisions have consequences. Allow your children to live with — and talk to them about — those consequences.” When your kids burn through their savings and need a loan to buy that movie ticket, the hardest answer may be the one that teaches them the realities of money management.
Americans have a major savings problem.
When the Federal government shut down this year, we learned just how small the American safety net truly is. Middle class Americans were seen at food banks within weeks, and even vital medication was gone without. CNBC reported that 40% of Americans don’t have even $400 in emergency funds. It’s about time we learned how to save.
To be effective, financial literacy needs to be fun.
And it can! As Practical Money Skills told us, “edutainment” is the way to go. That’s why we include hilarious sketch comedy alongside clear-cut money skills in our show, as well as our book and new online course, How to Turn $100 into $1,000,000. Who says money can’t be funny?!