Wells Fargo Gives Back During National Financial Literacy Month.
Children are ever-observant and eager to learn. They understand that money is important for buying food, clothes and other essential items. But, when and how do they begin to understand that you have to earn the money, and you need to budget and save for other wants and needs?
While more states are implementing standards in personal finance, the number of states that require high school students to take a course in personal finance has remained unchanged since 2014 – just 17 states, according to the Council for Economic Education. This lack of financial education is showing up in today’s youth as they transition to adulthood.
This year marks the 20th year that Wells Fargo has contributed to American Bankers Association’s Teach Children to Save to help prepare young people for financial success. Throughout April and May, volunteers from Wells Fargo will be visiting classrooms as a part of this initiative. It is an important first step in encouraging financial education and now is the perfect time for parents to continue the conversation at home.
Here are some age-appropriate topics you can discuss with your kids now:
• Teach younger children where money comes from. An allowance for completing chores can establish a work ethic early.
• Practice waiting and saving. The sooner your child makes saving a habit, the better, and the more likely it will become a habit that lasts into adulthood.
• Help your child to create a budget. Budgeting is one of the key components for financial success. Start simple for younger children then expand with age.
• Help your child understand the difference between needs and wants. The idea is for them to be aware of the balance between the two, so that spending on the “wants” is not excessive.
• Help your child to set financial goals. Whether it is having enough money to buy a toy, the coolest new shoes, or even a car, helping your child establish a plan to reach that goal can be one of the greatest financial lessons.
You can also visit Wells Fargo’s fun, interactive and free Hands On Banking program. The non-commercial online curriculum is easy to use and lessons are specifically tailored by age-group.
The Wells Fargo Children’s Financial Success Resource Center offers important information, as well as access to products and services that can support your financial goals.