School's in session: 5 ways to make financial education part of your child's routine

August 3, 2023 1:49 PM

As summer break comes to an end, working parents can get kids warmed up for the new school year — and far beyond — by introducing them to financial education.

Nearly half of high school students are concerned about their financial future, and only 14% have put their money into savings or investments, based on recent data from BestColleges. This mimics their family's habits, as 70% of U.S. adults report they are financially stressed, with the majority living paycheck-to-paycheck with no savings, according to CNBC's 2023 Financial Confidence Survey. A lack of knowledge comes at a cost: A 2022 National Financial Educators Council survey found that the average adult lost $1,819 due to poor decisions in areas such as credit card interest, luxury spending and overdraft fees.

Fortunately, it's never too late for parents to learn better financial habits, something they can then pass onto their children. But they need the right support and resources, says Matt Wolf, SVP of business development at Greenlight, a financial technology platform that provides debit cards and various education tools that help kids of all ages learn about and manage money responsibly.

"Having financial tools that can help kids get grounded in smart behavior is really valuable," he says. "Children of working parents may have more liberty around money, and a lot of parents don't feel equipped and understand the best way to educate their kids."

In fact, research from OnePoll shows one in three parents don't feel comfortable talking about money with their kids, and 82% are in search of outside resources that will help them. When it comes to life skills parents want to teach their children, financial literacy is in the top three, and this is a great opportunity for working parents — and employers — to explore family-friendly finance education options that will ease the strain.

Whether your child is seven or 17, it is always a great time to help them develop a good relationship with money. Wolf shares five tips for making the process easy and fun.

Start the conversation

Though many parents don't feel they have what it takes to teach all there is to know about money, they shouldn't be afraid to initiate talks or answer questions. For some, this may mean learning alongside their children, offering a great chance for quality time as a bonus.

Wondering what to focus on? A survey by the National Endowment for Financial Education found that 75% of adults feel instruction on spending and budgeting is crucial, followed by concerns around managing credit (55%) and saving (49%). Considering that America's credit card debt hovers around $1 trillion, these areas are a great place to start.

Pick a safe solution

By finding a secure platform that provides multiple levels of financial education and personalized preferences, parents can ensure that their children are engaging only with what they should be and that money is being used in the way it was intended.

"We focus on the stress that can come from your child using your credit card or using cash that was given to them on things you didn't want them to use it on," Wolf says.

With the Greenlight platform, parents can allocate not only the amount their children can spend, but specify where the money can be spent as well.

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Ask your employer about family financial benefits

As employers look for ways to recruit and retain talent, adding a family finance offering to their benefit package is a great way to incentivize employees and promote overall wellness among a workforce.

"The highest source of anxiety and stress among working parents is money," says Wolf. "Parents are interested in benefits that can give them convenience and peace of mind, and it gets heightened this time of year when kids have more time on their hands. Things that can promote awareness of good behaviors financially really rise to the top."

Connect it to responsibility

Sometimes there is no greater challenge in a working parent's personal life than keeping up with household responsibilities. Children can earn money while helping out with the Greenlight's chore program, which allows parents to set up deposits into their child's spending account upon completion of listed tasks.

"It can be distracting just keeping your house in order," Wolf says. "It's the ability for a parent to assign chores not just on their whiteboard on the fridge, but actually in the app that the child is using, making it more seamless."

Make it fun

In addition to saving, investing and earning tools, Greenlight includes a financial education game called Level Up that kids can play on their own or with a parent. Trackable gamified financial literacy solutions are a great way to know that kids are getting something out of their screetime.

"You don't necessarily feel equipped to teach kids why they shouldn't be spending every dollar that you give them, or why they need to create a budget," says Wolf. "Between the formal education game and the chore piece, working parents that are getting this are using it and finding utility in it."