When I was a youngster, my grandma taught me how to write a check and how to balance a check book. I didn’t realize it at the time, but that simple lesson snowballed into something bigger which helped navigate financial decisions in my adulthood.  

Including our children (or grandchildren, nieces/nephews, etc.) in financial discussions and decision making has a powerful effect. It is real-world, hands-on experience and not an abstract lesson they are just reading in a textbook. Here are a few things we can teach our kids now to start their foundation of financial literacy:

1. The value of money – seems basic, right? How often do our kiddos ask for the biggest or most expensive option because they know we are paying? Understanding the amount of time and effort to make that money is crucial. A weekly chore allowance is helpful for building a sense of responsibility and perspective for the things they want to buy. Breaking down the amount of work and the number of hours it takes to earn that money may change spending habits.

2. Compounding interest – saving and investing is a powerful tool that goes hand in hand with accomplishing so many life goals. Setting aside a percentage of weekly allowance will paint the picture of accumulation. Then, add “investing” in the mix with a high yield savings account. Or they can pretend play in the stock market and keep track of the growth that is happening in addition to the savings.

3. Understanding the why – financial matters include thought and discussion, whether they be the basic daily ones, or periodic bigger ones – use those moments as a teaching opportunity. We should explain the concepts, process, pros/cons, and resolution from anything from opening a credit card or refinancing a mortgage to balancing monthly bill paying – all this can help mold the financial big picture.

 

Ashley Costello CFP®
Financial Advisor
 

As of January 1, 2022, Ashley Costello is currently employed with Sequoia Financial Group.  NCA Financial Planners, LLC is now Sequoia Financial Advisors, LLC.  Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC registered investment advisor.  Registration as an investment advisor does not imply a certain level of skill or training. Sequoia Financial Group is not affiliated with RAA.

The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

Sequoia Financial

Talk to an Advisor

We would love to chat with you about how Sequoia can help you achieve your financial goals.

LOCATIONS
  • Akron, OH - Headquarters
  • Tampa, FL
  • St. Clair Shores, MI
  • Troy, MI
  • Beachwood, OH
  • Cleveland, OH
  • Columbus, OH
  • Mayfield Heights, OH
  • Hilton Head, SC

© 2022 Sequoia Financial Advisors, LLC

Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

Financial Literacy For Kids | Sequoia Financial Group

Error

The website encountered an unexpected error. Please try again later.