The dread of growing out of your childhood and emerging into the adult world is a common one; anyone can recount the struggles they faced after college. It’s having to face reality and financial responsibilities. As people begin to leave the nest, they realize there’s more to life than career and relationships: there are taxes, debt, credit scores, mortgage, loans, — I can go on. All of these things hit young adults like a truck and they wonder why they heard so little about it in school or at home. In fact, 77% of millennials believe that finance education belongs in schools. And, while 92% of American adults know how to write in cursive, only 55% know how to set up a 401(k). In many homes, finance is treated as a taboo subject. Kids understand the basics of money, but many things that will have an actual impact on their lives are hidden away by their parents. Some argue that it ruins the beauty of childhood: the innocence, the doe-y eyes blind to the stressors of the real world. However, how much will that oblivion be appreciated when they’re drowning in student loans because they were never taught how to properly manage their money? It’s no surprise that adults look back to their childhoods with a stinging sense of nostalgia. Rather than letting their kids live in an idealistic world until the very last minute, parents need to begin teaching finance. It won’t ruin their bliss — they’ll still be children — but it’ll prepare them for what’s to come so that the real world won’t be so scary anymore.
A reason some parents avoid talking to their kids about money is that they think they’re too young to understand the notions of wealth and privilege. Yet, children are observant and manage to pick up on the way things work. That’s why they implore to find out what parents would rather not disclose. We all know learning begins at a young age, we’ve gone to school since we were 6 or 7. If a 10-year-old is mature enough to study the American Revolution, they can very well understand the basics of finance and economics too. Most parents see the value in taking history or science classes, so, why don’t they see financial literacy in the same light? A parent that’s uncanny in their own financial literacy can educate themselves through free online resources or opt to purchase help. Then, they can ensure they’re telling their kids correct information. And, even on the rare occasion that they can’t do so, they can create an environment in which their child would be comfortable asking about or discussing money.
Money, its management, and the heaves of responsibilities it entails can be intimidating to many. Financial literacy is fundamental to an individual’s success, yet many find they have to learn about it independently. Then, because they were raised in a home in which it wasn’t discussed, they opt to do the same when they’re older and have children of their own. However, this creates a cycle that makes the topic of finance taboo. And, with no exposure to such information before having to deal with it themselves, people find making the best financial decisions difficult. By talking to their kids about it, parents can offer them a better relationship with money and a leg-up in the adult world. It’s time for things to change.