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By Katie B.
As a homeschooling parent, you know the value of teaching your kids good financial habits to help them have a secure future. But younger generations don’t necessarily view money the same way you do. Research shows that while Generation Z is more savvy about their finances than previous generations, they’re less confident about challenges like paying taxes and managing debt.
Homeschooling parents can address these issues by successfully teaching financial literacy. By adding this topic to your curriculum, your children will have a solid foundation to confidently build a secure financial future.
How the Financial Habits of Gen Z Differ
Examining Gen Z’s unique money trends helps us understand how young people view finances, including their fears and concerns. Because they were born into the digital era, many are tech-savvy. While they tend to be more conservative about money habits, they’re also more comfortable using digital tools like cryptocurrency. Unlike previous generations, they view it as a safer investment than stocks.
However, Gen Z also grew up during the pandemic and periods of great economic insecurity, which makes them more wary about finances. This generation is worried about saving for the future and receiving sound financial advice. Because of this, they are receptive to good, solid instruction on the fundamentals of money management and financial literacy.
Other money trends that Gen Z values include using cash-back credit cards as a means of building their credit score. Being as tech-savvy as they are, Gen Z also has a preference for digital banking, especially with institutions they believe are socially responsible. Further, around 30% of Gen Z move from their family into a home they own, making them a relatively large bulk of current homeowners for their age and income.
Finally, Gen Z also has unique spending habits. They value saving for the future over spending on education, preferring a quicker path to building income. Gen Zers mostly shop online or at locally owned storefronts.
Success Strategies for Teaching Financial Literacy
Armed with this information, what is the best way to teach personal finance and financial literacy to teens? Financial literacy means that a person has all the tools they need to manage money, whether they are a teen holding their first job, an adult managing their household, or a young entrepreneur.
Acquiring the skills of financial literacy helps your child avoid getting into too much debt. They’ll learn about the value of building a nest egg for retirement and the basics of investing. Most teens do not have financial literacy so adding this topic to your curriculum helps them build confidence to create a secure future, even if they have lived through economic turmoil.
Some strategies for teaching your kids about financial literacy include:
- No matter their age, start teaching your children age-appropriate financial concepts.
- Model good financial practices yourself so they can learn by example.
- Involve them in your financial activities, like shopping with coupons or creating a budget.
- Nurture their entrepreneurial ideas and endeavors with creative projects.
- Teach them the importance of long-term financial planning.
If you are consistent and patient, you can even help your child learn complex money concepts. Now, it’s time to build that curriculum.
Designing Financial Curriculum for Your Student
Financial curriculum can often be boring for kids. What’s the best way to incorporate financial literacy courses into your curriculum that will keep your kids engaged?
First, list out all the topics you need to cover. This includes basic concepts, including types of bank accounts and how to set them up, what investing entails and its importance, and how budgeting helps you manage your money. Debt and credit are crucial subjects you should understand before designing a curriculum, specifically their impact on financial choices.
It is also a good idea to make these lessons relatable. For example, if your child has a career in mind or wants to go to college, incorporate these goals into your lessons by examining typical salaries for the job and what kind of costs are involved in higher education.
Develop a curriculum that embraces their desires. How can they manage their finances to practically build a life they love? You can use their future dreams to teach practical money matters. For example, if your child wants to travel the world, you can teach them related financial topics like:
- seasonal travel costs
- using vacation time at work
- dealing with canceled travel means
This is also a perfect opportunity to add in a less engaging topic. For example, help them understand what insurance is by discussing the pros and cons of travel insurance.
Because our tech-savvy kids know how to search for topics of interest, your child may be more knowledgeable about money matters than you think. A great way to find out what they know that might engage them is by letting them take a financial literacy quiz. You may even discover they know more than you! This can help you build your expertise while developing more targeted lessons for your child.
Understanding the financial habits of Gen Z helps homeschooling parents teach their children financial literacy. Make your curriculum engaging and relatable to ensure your kids learn money management skills that will serve them their whole lives.
