This is the finding of a comprehensive study conducted by Brown University involving over 50,000 American families. Once these habits are established, they remain remarkably consistent through adolescence and beyond.
Parents want their children to grow up to be financially confident and financially secure adults. The habits children form early in life play an important role in shaping their future financial decisions.
Students spend thirteen years in school learning skills that prepare them for life after high school. Whether they begin their first job, choose military service, or attend college, those skills are essential.
In elementary school, children learn to read. They learn basic math skills such as addition, subtraction, multiplication, and division. In middle school, students build on their math skills by learning geometry and algebra. In high school, they learn more advanced algebra and perhaps calculus.
Education follows a logical progression. Financial literacy should follow that same progression.
Learning Standards are established by each state as guidelines for what should be taught to students at each grade level. There are clear expectations for math because mathematics is tested every few years to ensure students are progressing in their math skills.
In most states, financial education is expected to be taught starting in kindergarten. States publish financial literacy guidelines by grade level, and in 30 states, a financial education course is required to be taken in high school as a requirement for graduation. There is a well-thought-out plan to teach students financial literacy from kindergarten through high school, with every expectation that the guidelines will be followed. It is a plan that maps a logical progression through 13 years of schooling. The reality is that there are other priorities.
Financial literacy is not tested, so it may not be a priority given the limited amount of classroom time. Following the COVID pandemic, many students are well behind their expected reading level. Teachers want their students to succeed in life. First, students must be proficient readers to succeed in school.
Unfortunately, many high school students take a required financial literacy course without much knowledge or experience in the basics of financial literacy. Can you imagine a high school student taking calculus without knowing how to multiply or divide? High school students are learning about compound interest, insurable risks, and debt avoidance without a basic foundation in saving, budgeting, or spending wisely.
In elementary schools, reading is the priority. Reading by the third grade is a high priority. Financial literacy is commonly part of the social studies curriculum, and is not as high a priority, which is understood. Financial literacy is most often taught in elementary school classrooms when it is integrated with reading.
The illustrated children’s books created by Bonzy Charities Founder Doug Godard have been analyzed and assigned Lexile Measures of 510L to 540L. This means nothing to most, but is important to educators. Our books are appropriate for students in first and second grade for independent reading. The rhythm and rhyming style (anapestic tetrameter – think Dr. Seuss) promotes phonemic awareness, a building block for children learning to read. Our books promote reading while introducing financial literacy basics to students without taking away from valuable classroom time.
Parents and caregivers also play a critical role in helping children develop smart money habits.
Parents teach their children to brush their teeth each morning and night. They remind them to look both ways before crossing the street. Financial habits can develop the same way. These lessons become habits that often last a lifetime.
Young children learn through routines and repetition. Children are experiential learners. Parents teach their children when they are young to brush their teeth when they wake up and before they go to sleep. Children learn to look both ways before they cross the street. These are two experiences that became habits that carry into adulthood. Financial lessons learned early become habits. These habits make adolescents think twice before tapping their phones to pay for a strawberry Frappuccino.
Parents can create simple experiences that help children understand money:
• Saving coins in a jar or piggy bank
• Talking about the difference between needs and wants
• Allowing children to make small spending choices
• Encouraging children to save for something they want
• Discussing the importance of donating and helping others
These small experiences help children begin thinking about money in thoughtful ways.
Financial confidence does not come from how much money someone earns. It comes from understanding how money works and developing habits that support thoughtful financial decisions.
Raising financially confident kids starts early when habits are forming. Schools have a 13-year plan for teaching financial literacy that is often difficult to implement due to other priorities and classroom time constraints. Many of the habits formed by age 9 carry into adulthood. Children want to learn and need to learn about saving and other financial matters in order to be financially confident kids and financially secure adults. Elementary school is the time to establish Money Smart habits.
These Smart Money habits form the foundation for a better understanding of more complex financial concepts that may be introduced in a high school course or in decision-making as an adult, when the stakes are much higher.
Contact Us