Americans are more likely to learn about personal finance from family and friends (45%*) than from schools or professionals. Financial habits are often formed organically at home. Over time, children absorb conversations about money and adopt the money practices they observe.
While Texas’ new graduation requirement for financial literacy credit will help our students strengthen financial capability, the foundation for a healthy financial future truly begins at home. As parents and caregivers, we play a critical role in shaping the next generation of savers or spenders.
Unfortunately, current statistics highlight the need for improvement. Only 46%* of US adults have enough emergency savings to cover three months of expenses, according to Bankrate’s Emergency Savings Report. This finding underscores the importance of early education and proactive financial guidance.
The solution? Start early.
It’s never too soon to introduce children to money management skills and healthy financial habits. Several organizations including the FDIC and OCC provide free resources and tools making it easier than ever to begin the conversation. With so many accessible resources, there is no shortage of support for building a healthy relationship with money. This becomes especially important during key stages of life, such as purchasing a home or starting a business.
For parents, reflecting on our own relationship with money is a great place to start. It’s important to recognize that WE are in control of our financial futures. Financial education is not a one-time event, rather it is a lifelong journey.
Start Early: Age-Appropriate Money Lessons
Teaching financial skills can begin earlier than many people think:
- Ages 3-5: Introduce basic concepts like saving using a piggy bank; explain that money is used to buy things; use clear jars so children can visually see savings grow
- Ages 6-9: Provide a small allowance tied to chores; consider opening a checking and/or savings account to encourage kids to save for larger goals
- Ages 10-12+: Introduce budgeting, price comparison, and saving a portion of money earned (income)
Research shows that money habits begin forming as early as age 7, making early exposure especially important.
If you’re unsure where to start, you’re not alone. There are many free resources available for both parents and children to learn together. Additionally, community bankers remain a valuable resource offering personalized guidance and support for your financial needs.
If you need support, reach out today!
Helpful links:
Half of US adults lack financial literacy, survey shows | World Economic Forum
The Average Savings Account Balance in the U.S. | Bankrate
Money Smart | FDIC.gov (free resources)
Financial Literacy Resource Directory | OCC (directory of additional free resources)
