The Opposite of Spoiled:
The Right Way to Teach Kids About Money
by J.D. Roth
The Right Way to Teach Kids About Money
by J.D. Roth
What’s the best way to teach kids about money?
That question has haunted folks for decades — maybe centuries. There are dozens of financial literacy programs in the United States right now, but none of them seems to be effective. Why is that?
I’ve written before about why I think financial literacy education fails. Here’s the short version: Most financial literacy fails because it focuses too much on mechanics — how bonds work, the magic of compound interest — and not enough on behavior. While mechanics are key (they’re the foundation, after all), they’re not the most important aspect of financial success.
Here’s an analogy:
My brothers know how to read and write. They’re smart guys, and they’re both literate. But just because they know how to read and write doesn’t mean they practice those skills. One of my brothers used to proudly declare, “I haven’t read a book since high school.” (Oh, how that hurt my book-loving heart!) Knowing how to read doesn’t make you a reader. And knowing how to save doesn’t make you a saver.
Financial literacy is not the answer. We’ve got to do something more if we want to teach