Learning Financial Literacy in a Novel Way

Financial advisors and parents alike find themselves continually attempting to explain the intricacies of the financial world to their children. When it comes to financial matters, my 8-year-old kid and my 50-year-old customer should have the same level of importance. For whatever reason, our school system does not provide financial literacy skills for money management. My aim is that the future generation will know how to save and prepare for retirement long before they begin their first job, thanks to the increasing number of tools at our disposal.

My daughter, for example, is a good illustration of this. During the summer of last year, my then-7-year-old son inquired about my profession as a financial adviser. So, naturally, my daughter wanted to join in on the chat that her peers were having about what their parents did for a career. I had previously described my job to her as a “summer vacation that never stops” since I helped individuals prepare for retirement. She didn’t give it much attention until other kids began talking about how their parents owned a restaurant, helped people get well as a doctor, or worked on getting goods delivered quicker as an Amazon engineer. Quite a few “Huh?” looks were on the faces of my daughter’s peers when she revealed that her father helped others prepare for an endless summer holiday.

In the end, I chose to have a more in-depth conversation with my kid about what I had truly done. It felt like a decent idea to start with the fundamentals of investing. In order to illustrate what a financial adviser does, I decided to use crayons, blank paper, and a 7-year-old’s creativity. old. A simple explanation of what the stock market is and by the conclusion of our first chat, my daughter had learned the rhyme, “Stocks make you an owner, and bonds make you a loaner.”

This was a step in the right direction! Investing in the stock market had begun to take on the form of an actual book after a few more arts and crafts sessions. We should attempt to publish our book so other children may learn about investment, and my daughter came to me with the following response: “Dad, you can’t simply publish a book. “Authors are the only ones capable of doing it!” I’m up for the challenge!

After six months, our rough copy had been refined into a completed book. “Eddie and Hoppers Explain Investing in the Stock Market” is now available for purchase on Amazon! As a father and a co-author, I am immensely proud of my daughter for her contributions to this tale and to the book’s success.

Although I assumed the book would keep my daughter engaged in financial literacy, I should have recognised asset allocation and risk management weren’t exactly the most fascinating subjects for an 8-year-old. I’m glad the book did. When it came to financial matters, I had to find a way to incorporate them into daily life.

For a second-grader, money management is rather straightforward. For the most part, my daughter’s major sources of revenue include a monthly allowance, presents from family for birthdays/holidays, and last year’s successful lemonade shop. Not generating money was the issue; rather, it was managing her funds and remembering exactly how much she had when making purchases.

It was only natural for me to do so as a father and financial counselor. To keep track of everything, I made a spreadsheet. As it turns out, my kid isn’t all that interested in spreadsheets either. I had my “a-ha” moment at this point. There are several tools available online for keeping tabs on how much money a child earns, spends, and saves. A similar search for children’s books on financial subjects was conducted by me this summer when I was attempting to educate my daughter about my job. That’s how I came up with the idea for our book. In the end, I was able to find the software I was seeking to assist me in educating my daughter about money management.

A combination of ease of use and efficacy convinced me to use Guardian Savings with my kid. My wife and I are able to act as “The Bank of Mum and Dad” with the help of Guardian Savings. Her funds from the half-dozen wallets, piggy banks, and hidden hiding places were eventually pooled so she could make her first deposit. Moreover, while we’re shopping at the store or online, we may open the app and show my daughter the consequences of making an impulsive buy. I also get to choose the interest rate for my daughter’s account since I’m her father. As a bonus, I get to teach her about interest rates and the magic of compound interest as she watches her money grow over time. It’s a great motivating force!

When it comes to teaching your kid how to balance a checkbook, this is a thing of the past. It’s just a matter of time until the next generation is completely digital. Personal financial education should be taught in the same setting that your children will be in when they are adults since apps are now the new checkbook. My daughter, who is already a digital native, amazed me with how quickly she learned how to use the app, as well as the program’s emphasis on saving and wise spending. Eventually, I’ll be able to talk about asset allocation and Roth IRAs, but for now, I’m delighted that my daughter may practice budgeting choices and gain a solid knowledge of the fundamentals. In order for a youngster to become financially literate, he or she must first build a strong foundation of financial knowledge.

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