When it comes to money, education should always start at home. Children learn by watching how their parents handle money, so it makes sense to include some financial literacy lessons in their homeschool curriculum. You don’t have to be a finance guru to get the right messages across. The idea is to give your kids some basic tools so they can avoid making costly mistakes. Not sure about adding this to your plan? Here are several reasons your homeschooler should learn about personal finance.
1. Money is fundamental.
Knowing about and using money is a fundamental need. Children need to understand the value of the things their parents provide. Beyond this, kids will need money management skills when they start earning, spending, and saving on their own. As adults, they will need to know how to write checks, negotiate salaries, and purchase a home.
2. Financial illiteracy can be costly.
Not having good money management skills is a primary cause of anxiety for adults. It even threatens many otherwise happy relationships. Nearly half of Americans don’t have enough cash to cover a $400 emergency. And many people are saddled with overwhelming student loan debt, credit card debt, and even medical debt.
3. Financial knowledge promotes prosperity.
Most young people certainly have a more difficult financial road ahead than their parents or grandparents. But having a solid financial background can lead to wiser choices and more prosperity.
For example, financial literacy can teach the fundamentals of household budgets and the importance of saving for retirement. Smart financial decisions can also impact your child’s credit score, which can help them qualify for better terms on a home mortgage or vehicle loan.
Understanding money also results in less anxiety and stress. This can have positive health impacts and improve your child’s relationships and quality of life.
4. You get to control the message.
A recent survey by Credit Karma/Qualtrics found that 63% of respondents believed personal finance should be taught in schools. But, when it isn’t taught in school, many Americans turn to alternative sources for information, like websites or friends. When you include personal finance as part of your homeschool curriculum, you can control the message and ensure the proper financial values are passed along to your children.
Get Access to the Homeschooling Resources You Need
While all of these suggestions are great reasons for teaching your child personal finance, you don’t have to do everything on your own. Get the support and encouragement you need from the South Carolina Association of Independent Home Schools (SCAIHS). For over three decades, we have been providing valuable resources like academic programs, curriculum assistance, reporting, and bookstore discounts for homeschooling parents and their children. Contact us to learn more about the benefits of membership in SCAIHS.