How teaching kids financial literacy at an early age is helpful

SOUTH BEND, Ind. -- Understanding money is more than just counting coins, it’s about building skills that last a lifetime.  

Sylvan Learning Chief Operating Officer of Mishawaka Sarah Miller says teaching financial literacy to kids early on is key to preparing them for the real world.  

"Sometimes money can be a taboo topic or maybe something we don't talk about because the money is there, the money is not there. But if we continue to talk about, and again as parents, bringing your kids into those conversations, it helps them not be afraid of, not be unaware, but to be aware and able to understand what's a healthy relationship with money. Understanding what we have and don't have and how that impacts the decisions that we make about the purchases that we are making," Miller said. 

One of the easiest ways to introduce money management, Miller says, is with a chore chart. She says assigning tasks like taking out the trash or cleaning their room teaches kids that hard work leads to earning money.  

This then helps kids learn the value of saving and setting goals. Miller says giving kids real world experiences with their money, like taking them to a restaurant or a store, can help them see these lessons in action.

But there are also fun ways to teach these lessons. Games like Monopoly or apps designed specifically for kids that can teach them budgeting and smart spending.

"Having that financial literacy allows them to be able to understand what it looks like to be able to know when they're earning something, when they're working hard. What does that really mean for them in terms of what they can be able to spend based on what they earned," Miller said.