Teaching Financial Literacy to All Ages: Week 3 - middle and high school age

This is part three of our financial literacy for all ages series. Here are the links to parts one and two: teaching financial literacy to preschool aged children, teaching financial literacy to elementary school aged children. (LINKS)

Middle and high school are transformative times for learning, maturing, and growing up. Even if the lessons don't feel quite so obvious, you are still teaching the children around you by your example and money habits.

Most money habits are formed and set in the elementary school ages, but there are so many more things to learn, like how to set a budget, how credit works, the cost of living, and even investing.

At the younger end of this age range, you may want to start teaching about debt, credit, and budgeting. Your student may lend or borrow money from a friend, and this is a great introduction to debt and credit. We don't recommend charging interest when borrowing or lending friend-to-friend, however, this is an opportunity to teach about how banks and financial institutions do charge interest. In the same lesson, you can talk about how banks and financial institutions reward saving and investing by paying interest.

Around this age (or maybe earlier, depending on your child's friend group), there may be specific brands of clothes, electronics, or sports equipment that your child wants. Use these big purchase items as way to show your child how to shop for the best deal. You can also reinforce the idea of need versus want. 

As your child grows and gets his or her first job, let them also learn about the cost of living. Having to pay for their own gas or outings with friends will help underscore your words of wisdom about savings and delayed gratification.

This is also a great time to help your child start building a credit score. The general recommendation is to get a store-specific credit card in your child's name. This might be for a gas station or grocery store, so that the spending is somewhat more controlled. Having some credit built up will help when your child has to apply for loans as a young adult. 

There are always opportunities to teach the young people you influence, whether with your words or your actions. 

Check in next week for our final post in this series.