A recent Nerd Wallet posting has shared a startling study that estimates roughly 3.4 billion worldwide are financially illiterate. Of the total 150,000 surveyed only 33% of adults had passed a simple quiz.
We need to figure out how to bridge this huge gap and make sure that our kids are getting the financial education they need while they are young to minimize the amount of mistakes they could potentially make.
Unfortunately, most schools leave financial preparation up to parents, or they fail to create world examples that will push these ideas into our children’s heads. Really it’s no wonder why students who head off to higher education find themselves hitting a hard financial wall.
There are too many of them who are still struggling to differentiate between a need versus a want to be able to even think about how much money they’re actually going to need to payback their loans.
We are leading them on this journey, yet we are not giving them the resources to be successful. Overall, this study is a huge wakeup call to anyone parenting now, work with your kids and talk to them about money. Begin placing importance on it when their young. Have them develop responsibilities doing chores, maybe give them a loan that they can pay back with a small amount of interest. Give them the opportunity to fail safely with their family to help teach these lessons so they can grow up and raise that percentage.