The best way to teach kids financial literacy is in the context of their everyday lives. Here's this month's teachable moment:

 

Teaching kids to be good consumers requires that we have them reflect on their purchases...before they spend the money. And an easy way to do this is to teach them the Three Money Questions:

We impart our values to our kids through our words and our actions. Mostly our actions. Take a moment to reflect on the things you value. Integrity, compassion, honesty, persistence, courage, patience... Now think about an action that can be associated with each one. For example, returning the unpaid can of tuna you discovered in the shopping cart ~ honesty. Or volunteering to speak at the board meeting even though the thought of speaking in front of people makes you mildly ill ~ courage. :-)


Now think about the kind of values you want your kids to live by when they grow up. Since kids do most of their learning through observation (they're quite good at it!), it's important to think about the messages your behavior is sending. Are you living the values that you want to help define your kids as adults?


The Money Connection: Our values are also imparted to our kids through the way we handle our money. We teach generosity when we share with those less fortunate than us. We teach responsibility and delayed gratification when we put a little of our money aside for the future. And when we splurge every once in a while on a fancy dinner out, we teach that it's good to enjoy, as well.


Conversely, shopping impulsively teaches kids that the value of a dollar is not important. Not to mention the messages sent about lack of self-discipline. And holding too tightly onto money teaches kids that experiencing life is not important.


So take time every now and then to reflect on the choices you make on a daily basis. Because how you live life is how you live your values.

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Free tools to help teach kids about money.