You’ve likely heard the common millennial refrain, “I don’t know how to file my taxes, but at least I know that the mitochondria is the powerhouse of the cell!”

Biology basics are, of course, important. But with “more than 1 in 6 students in the US (not reaching) the baseline level of proficiency in financial literacy,” it’s clear that young people are not learning the financial basics they need to be successful.

The good news is that parents can make a huge difference. By helping kids earn money, talking about money and saving for future fun, parents can help their children be money-wise. As your kids go back to school, you can be their best teacher! Keep reading to learn how.

Help Kids Earn Money

Nothing teaches the value of a dollar like paying for things yourself. Help younger kids earn money in exchange for chores, or help older kids find an after-school or summer job to pay for their football uniform or T-89 calculator. It may be difficult for them at first, but giving them hands-on experience is priceless.

It’s important to teach kids that spending isn’t just about buying fun things; as an adult, you can pay people to do things for you. Chase Peckham, director of community outreach for the San Diego Financial Literacy Center, pays his kids a salary each month, and “if his kids don’t do certain things they’re expected to do to help out around the house, it will cost them. … In essence, they’re paying their parents to do those things for them. And the money comes out of their allowance.”

Talk About Money

Having conversations about money should become as natural as asking your kids how their day at school went.

“Talking about money can’t be relegated to a one-time conversation,” said Lynne Somerman, money coach and founder of The Wiser Miser. “It needs to be part of the day-in, day-out conversation. As money topics come up and your kids are around, talk about them as openly as you feel comfortable.”

One easy way to do this is to include your children in everyday financial decisions. Look through grocery mailers to see what ingredients are on sale to help you decide what to put on the menu for next week. Or tell them how much is budgeted for new shoes and let them decide whether they will get two pairs of cheaper shoes or one pair of more expensive ones.

Save for Next Summer

Summer vacation 2022 feels forever away, but it’s never too early to start saving for anything from a new bathing suit to an AirBnB with a pool. Kids of all ages can get involved. Here are some age-appropriate savings tips to try:

• Get a clear jar so your elementary school child can see their money growing over time. Explain scenarios that explain how to save and why. For example, saving up to buy a small present for their friend is a short-term savings goal, saving to contribute to buying a bike for next summer is long-term, and saving a fund in case their bike tire pops is emergency savings.
• Help your middle schooler make a personal budget that includes savings. Now is the time to teach savings strategies like “pay yourself first” and comparison shopping.
• Help your high schooler set up a savings account so they can start depositing their money and watch their compound interest grow!

Whether you feel you’re a financial whizz or not, you can help your kids learn the financial basics they need to know. Help them earn money, talk with them about money and work together to develop a solid savings habit. There’s no better life-skills teacher for your child than you, so just do your best and watch your child become more and more confident in their money skills.

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