Financial literacy means having the knowledge and skills to manage your money successfully and confidently. Broadly, that means knowing how to: -Save money - Invest - Avoid debt - Save and plan for retirement
Children constantly observe and learn from people and the world around them. Therefore, one of the best ways to instill financial literacy in kids is to model good money habits.
But what does this mean? It means, first of all, smashing the taboo of talking about money. Instead, show your kids how you save, spend, invest, track, budget, and so on.
Kids can start learning the basics of investing from a surprisingly young age. Here are some age-based ideas for how to instill investing knowledge: Basic Concepts (4–8 years old) - Point out public companies they're familiar with (e.g., Disney, Mattel, Apple). - – Explain how regular people can buy a tiny piece of those companies.