How to Teach Your Kids Financial Literacy

Many Americans need to improve their financial literacy. Our basic knowledge of finances, such as how interest rates work, how compound interest works, and how to save for retirement or emergencies, is woeful, according to several measures.  In an April 2018 article, Forbes.com states “two thirds of American adults can’t pass a basic financial literacy test.” A 2019 article on MarketWatch.com reports “Americans have inflated self-perceptions of their financial knowledge.”

“Financial literacy is a life skill,” says Sarah Nelson, Area Manager of Town and Country Bank’s Springfield branches. She coordinates bank employees’ efforts to provide financial literacy classes and programs in the community. “There are two things that really drive a person and create stress throughout their lives, one is health and the other is finance. We need to be knowledgeable about our finances, the consequences or benefits of our financial actions, and how to navigate what can be a complicated system. Unfortunately, these aren’t skill sets taught in traditional education courses.”

Jana Hattey is President of Peoples Prosperity Bank in Quincy, which also provides financial education to community groups and schools, like all other banks in the Town and Country family. “We like to get financial education knowledge to children as soon as possible, especially before they get out in the working world, so as a college student they don’t get into a lot of heavy debt or into issues that will take a long time to correct.”

While students are home during the pandemic lockdown or over the summer, it’s a great time to build their financial literacy skills. Sarah and Jana have recommendations on resources for parents and teachers to help, regardless of a child’s age:

• FDIC.gov – The Federal Deposit Insurance Corporation has lesson plans, videos, interactive activities, a coloring book, and more resources for parents and teachers of children from preschool through high school.
• Everfi.com – Everfi, an education technology company, is providing free access to courses during the pandemic for a limited time. These include online courses and games for kindergarten through high school students on a variety of topics, including financial literacy.
• ABA.com – The American Bankers Association has financial literacy activities for youth and adults, as well as help for parents on how to talk to their kids and teach them about money and financial responsibility.

For questions or additional information regarding the importance of financial literacy, visit TownandCountryBank.com or call us at 866-770-3100.