Why you can’t afford not to talk to your kids about money

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Many of America’s high school students aren’t getting the information they need to make good decisions about managing money. According to this article in the Cincinnati Enquirer, 68% of high school students failed a national test of personal finance knowledge.

Here are a few reasons why parents need to talk with their kids about personal finance:

  • Kids are managing their own money – over $15 billion per year is spent by “tween” children.
  • College kids are taking on credit card debt – the average college student has $4,100 in credit card debt by the time they graduate.
  • Financial literacy is part of a healthy, critical-thinking approach to managing your life. Without sound budgeting skills, people are likely to fall short of their goals in life.

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If you’re a parent, don’t let financial literacy fall by the wayside with all the other important conversations you need to have with your children. Talk to your kids about how they can better manage their money, save money, spend smarter, and build a stronger financial foundation for the rest of their lives.

Source: Cincinnati Enquirer, Julia Heath, “Financial literacy more important than ever for teens,” March 30, 2012