It's More than Just Kids and Money

Lack of Financial Education Can Ruin Your Kids Future

Trivia Questions

1) What do couples fight about more than anything else?

2) What is one of the leading causes of stress?

3) What is a leading cause of major health problems (obesity, heart disease, diabetes)?

4) What has a negative impact on a young person's emotional well-being?

Answers 1) money 2) lack of money 3) money stress 4) money mistakes

Lack of Financial Education with Kids and Money

According to the American Dream Education Campaign, kids and teens often fail at their first financial money experience. This may lower their confidence and send them in to a downward spiral where they end up making financial mistake after financial mistake.

This downward spiral is easy to get into especially while you're young. One little credit mistake will haunt them for seven years. During this period they will experience higher rates, added fees and may not qualify for things that will better their financial future, like school loans for instance. A study from Key Bank illustrates this point "Three-quarters (75%) admit to having made mistakes with their money when they arrived on campus."

There are many financial decisions people need to make today and any choice could be a pitfall to the financially uneducated. So it is crucial that when embarking on youth leadership training, that kids are taught about money as well.

Don't schools do this?

"In most cases, economics and personal finance courses are elective classes so only 12% of Americans graduate from high school having learned anything about money at all", according to a Fox News report.

Many schools are required to teach economics however this course does not provide them practical information they can implement into their life now. Economics courses teach high schools students about the 'price elasticity of demand' and 'marginal costs'. But it fails to teach them practical matters they will use in the real world like: credit, investing, and retirement account education. When it comes to kids and money, schools don't teach the practical money matters.

Does financial education do anything?

Financial education not only improves their finances but improves all areas of their life.

Research from The Department of the Treasury shows that individuals that have taken personal finance education have higher savings rates and net worth's as a percentage of their earnings. In addition they participate more often in 401(k) programs and make larger contributions to their retirement plan.

This improved financial position gives them more confidence, less stress and allows them to live a fuller, happier life.

Protect your child with practical financial education.

Kids and money are two delicate subjects, so it's up to you! What type of life do you want for your child?

Choice A: Your grown child is in major debt, unable to pay their bills, constantly fighting with their spouse, stressed out, unhealthy and an emotional wreck.

Choice B: Your grown child is financially secure, living the lifestyle they desire, in a healthy relationship, happy, well-rounded and enjoying life to its fullest.

The choice is obvious and the message is clear. It's up to you to give your child the benefits that practical financial education and youth leadership training offers. Lay the groundwork for their financial future then rely on trusted professionals to your kids financially literate about money.

Vince Shorb, financial literacy advocate and expert, gives young adults practical financial education in his new multi-media course 'Financially Free by 30'. Get exclusive video instruction at www.FreeBy30.com.