Financial Literacy for Kids & Teens: Saving, Investing, Budgeting & Beyond

FacebookLinkedIn

FREE Insurance Comparison

Compare quotes from the top insurance companies and save!

 Secured with SHA-256 Encryption

Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides...

Full Bio →

Written by

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing...

Full Bio →

Reviewed byLaura Walker
Formerly Licensed Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/usinsuranceagents-live/2020/03/laura-walker.jpg

UPDATED: Oct 22, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

“Money doesn’t grow on trees.” That’s what many parents say to their kids when the subject of a new toy or their own smartphone comes up. Sooner or later, every kid should learn where money does come from and how to manage it. Financial literacy is one of the most important skills a young person can learn, and fewer than half of American schools carry requirements for it.

Fortunately, the Internet has vast resources available for teaching kids and teens about how to save, budget, and even invest their money. Through a wealth of tutorials, games, and tips, you could soon be on your way to a fat savings account… or even teen entrepreneurship!

Saving

When should kids start learning about saving money? The experts say, the sooner the better. A child in kindergarten can learn that you need money to buy things, people earn money by working for it, and money must be saved to buy more expensive things.

A child who must buy things with their own money might quickly learn the difference between “want” and “need.” As early as sixth grade, a kid can learn about putting savings in the bank, compound interest, and making their money grow (rather than blowing it on frivolous purchases). Teaching kids about saving their money will pay huge dividends when kids become teenagers and it’s time to save money for college. Teenagers in particular are targets for opportunistic credit card companies, and need to know that credit cards are not free money.

Budgeting

Young children have little need for budgeting their own money, but teaching them how to plan finances becomes more important as they grow older. Learning to budget at a young age can help avoid financial pitfalls later in life and give kids and teens the tools they need to prosper. Parents can include their kids in planning the family budget as a fun bonding activity. Financial planning becomes a critical life skill when teenagers get their first credit cards and leave for college. Some financial education might prevent panicked late-night calls to parents because they’re out of cash.

Investing

At first glance, investing might seem like an advanced topic for kids to learn – but you might be surprised. Once a child gets beyond the basics of the piggy bank and savings account, it’s not a drastic leap to stocks and bonds. Learning about investing teaches kids and teens about risk and reward, tracking investments, and how the market works. Planning investments is a family activity that can pay off figurative and literal dividends down the road!

Consumer Education and Financial Learning

Learning to become responsible consumers can be an important part of a child’s financial literacy. Comparison shopping, making smart consumer choices, and careful consideration of major purchases don’t always come naturally. These are learned behaviors that work best when a child or teen is armed with information. As teens approach adulthood, issues like car and personal insurance, paying premiums, and preparing for the future become more important. These resources will help kids and teens make informed choices and get the most out of the money they’ve worked so hard to earn, save, and invest.

Entrepreneurship

Beyond the basics of saving, budgeting and investing lies the ultimate in financial education for young people: running their own business. With the right training and resources, kids can move far beyond the corner lemonade stand or cookie-selling venture. Fostering an early interest in entrepreneurship can forge a powerful career path that leads to confidence, creativity and financial independence.

FREE Insurance Comparison

Compare quotes from the top insurance companies and save!

 Secured with SHA-256 Encryption

FacebookLinkedIn