Kids learn about money from their parents.
They observe what parents do and what they say about money and pick it up by osmosis. It’s the same way they learn to talk, and end up talking in the same dialect as their parents.
An article in the Wall Street Journal by Beth Kobliner tells us that
Three out of four American teens lack the skills to decipher a pay stub. That’s just one of the sobering findings from the first international test of teenagers’ financial literacy. American 15-year-olds posted barely average scores, with the U.S. ranking in the middle of the 18 countries whose students participated.
That tells us a lot about the financial skills of the average parent.
What’s to be done?
As a parent of young children, plan to getting better educated about saving, credit cards, debt, investing and all the things that make you financially literate. If you don’t want to read books on the subject, get help from people whose job it is to educate you, like RIAs who are Certified Financial Planners.
At the very least, you can visit the website: Money as you grow, “20 things kids need to know to live financially smart lives.”