How To Foster Financial Literacy in High School Students

There’s an old saying that still rings true today. “Time is Money”. On the other side of the equation, it’s been said that “money costs you time”. Basically, if you want more money, you’ll have to give up time.  If you want more time, you’ll have to give up some money.  For most of us, they are interchangeable and you can’t gain both at the same time.

However, the more we know about our finances, the better we can control money and also do the things we enjoy in life.  It sounds simple enough, but teaching financial literacy to your high schoolers so they learn critical life skills may be easier said than done.

Within this vast subject, a good understanding of various banking products like certificates of deposit, savings and checking accounts, and credit cards play a big role in your everyday lives.  The more parents know, the better equipped they are to transfer that knowledge to teens.

Developing Financial Responsibility in Your Teens

Introducing Theoretical Concepts Early

Teaching your high schoolers some fundamental concepts, especially money matters, can help establish a solid base for them this early, like:

• Interest Rates

It’s best for your youngsters to understand how these rates impact borrowing and saving.

• Compound Interest

Today’s teens need to realize how investments can grow their money over time. The earlier they start, the more it will multiply.

• Inflation

They have to know that when prices increase it will increase interest rates. This benefits  investors but is bad for borrowers.

• Budgeting

Knowing when to keep and let go of their money is a wise skill they need to learn to stretch their dollars.

• Time Value of Money

They have to grasp how their present money’s worth may not be as huge as they think it will be in the future.

By laying this groundwork with patience, you help pave the way for a more financially secure and educated family member and future generation.

Utilizing Practical, Real-World Examples

In the tactile world of a high schooler, the more “real-world” your examples are, even with financial concepts, they can become tangible and easier to understand.

It’s like how they understand banking products by comparing certificate of deposit features from that of a savings or current account. It’s a way of highlighting to them the importance of interest rates, liquidity, and interest income.

You can show how a $1,000 investment in a certificate of deposit (CD) grows over time due to compound interest, emphasizing the benefits of saving over spending.

Maximizing Interactive Tools and Apps

Some people may find it challenging, but teaching today’s teens using tools and apps, especially if you want them to learn something as complicated as finance, can be the simplest trick. These apps, like Mint or Acorns, could help students simulate budgeting, saving, and investing in a more relatable way.

When they use these tools, teens can easily relate and track their spending habits, plan savings goals, and see how compound interest in these apps affects their money. As they continue to engage in these interactive experiences, abstract concepts come to life in their minds, making financial education intriguing and enjoyable.

With your guidance and by maximizing these apps, you can provide more hands-on learning that empowers them to manage their finances effectively, ensuring a secure and informed financial future.

Joining School-Wide Financial Literacy Events

Since you’re the best fan of their learning, encourage your teenagers to join or participate in school-wide financial literacy events. Whether it’s school-sponsored or not, these info-drives could be very beneficial to their learning, like:

They could engage in real-world scenarios and help them simulate financial decisions in a controlled environment.

Teens could gain new and exciting learnings from industry professionals’ expert insights.

The activities there could help them learn and collaborate from peers’ or classmates’ experiences.

They could engage with interactive budgeting, investing, and saving activities through purposed stations.

It’s where they could develop skills that boost their financial confidence from then onwards.

Especially if it’s with reputable financial advisors, your youngster could experience a more comprehensive and engaging approach to financial education in these opportunities. These might just be what your teen needs to pave the way for them to make more informed decisions and a secure financial future.

Integrating Financial Literacy Into Daily Activities

It’s a tough job, but you, as parents, can be the key role players in integrating financial literacy into your kids’ daily lives. You can have light discussions about household budgeting, involve them bit by bit in real-life financial decisions, and the setting of saving goals. Bring them along as you go through some of your transactions, like shopping or bank visits, to highlight the paying and saving concepts.

Also, you can explore financial applications together, discussing scenarios so they get used to the ideas about money firsthand. This way, you’re not just teaching about money but also making them smarter at life lessons (not just hacks).

Conclusion

You might consider these insights quite overwhelming for your young family member, but it’s better that you start them young. As they learn it now and live through it, they’ll become more adept at dealing with money, and you’ll be worry-free about their financial management in the future.