Financial Literacy

My wife and I were band volunteers during my daughter’s high school years. One summer, my wife worked at the payments table when a student approached her about paying for his items, but he didn’t know how to write a check. He never learned how to use a checkbook, and he was a senior!

Financial literacy is a concern since most kids are taught little about banking or finance. According to one study, college students carry an average loan balance of $37,000, and the Federal Reserve Bank of New York reports that the collective debt level is $1.6 trillion.[1] If students (and parents) had a basic understanding of finance, the student loan crisis would not be a crisis. The student-loan debacle is a result of poor financial literacy, and we’re all paying for it.

If you have children or grandchildren in elementary, junior high, or high school, here a few things you can do today to give them a boost, and the sooner you start, the better. As Yosemite Sam would say, “Time’s a wastin!”

  1. Open a checking and savings account so they can experience the banking system up close. Help them transfer 10% of all deposits from their checking account to their savings account. For example, if they deposit $100 to their checking account, transfer $10 to savings. Teach them how to use their bank’s online portal.
  2. Give them access to their debit card and encourage them to use it while shopping. When you dine at a restaurant, make them pay the bill with their debit card. Show them how to use the ATM.
  3. When they’re old enough, open a credit card in their name so they can start to build their credit history. If you’re concerned about excessive spending, put a spending limit on the card. I recommend linking the credit card to their checking account for automatic payments, so they don’t incur any late fees.
  4. Buy a few shares of stock in several companies. Let them pick the companies, so they have an interest in following their progress. A great way to learn about financial markets and the economy is to own individual stocks because they will have skin in the game. They’ll also learn a lot by reading annual reports from Berkshire Hathaway, Apple, JP Morgan, and Tesla.
  5. Encourage them to donate 10% of their income or savings to charities. Help them help others through giving. A giving mindset is emotionally and financially rewarding.

Please don’t wait until your kids get their first job after graduating from college before learning the basics about money; educate them today on banking and finance. Then, your children will make wise financial choices, and they won’t live in your basement until they’re forty.


May 10, 2021



[1], Daniel Kurt, March 16,2021

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