The Youth Financial Literacy Solution

Many parents try to get their child ready to become financially independent and mistakenly believe that a practical financial education is given in high school. Since personal money management isn't taught at most schools its up to parents and teachers to make sure their children are prepared.

One of the reasons college students are notoriously 'broke' is that no one has really taught them how to deal with their finances, or reinforced positive spending habits. In this article, we'll go over some of the ways you can make sure that by the time your child needs to deal with his or her own money, they are ready to do so.

Educating your child or student in certain areas is crucial when it comes to financial responsibility. Areas important to youth financial literacy include general knowledge of how the banking system, credit and debit cards, investments basics, the mental game of money and related aspects personal money management.

There are a number of emerging youth financial literacy programs however most focus on impractical, theory based aspects of personal finance. Check with your local school district, community center and/or city council about program designed to help parents give their children a real world financial education.

Perhaps the most important person you can educate on youth financial literacy is not your child, but yourself. Young adults pick up financial habits by watching how their parents and teachers handle their money. If you practice financial habits that are healthy and responsible and inform your child about why and how you do them, it will make a significantly greater impression than simply lecturing them about why they should spend their money a certain way.

Also be sure to raise awareness about the importance of receiving a practical financial education. Simply informing your children or student about why you make certain purchases instead of others and how to act in certain financial situations is enough to show them how responsible behavior with money can affect personal finances.

Due to the emerging financial crisis, young people need to know more than ever how to properly deal with money, especially when the younger generation comes from an era of relatively free spending. Youth financial literacy is being stressed more and more across the country, and important information regarding financial literacy can be found online.