Don’t bother teaching kids financial literacy
THOSE who advocate teaching personal finance to children in primary schools envision adults in the future who are able to budget, understand the implications of rollover credit card debt and can sidestep complex and risky investment products.
Professor Emeritus Lewis Mandell, who has researched financial literacy issues in the last 15 years, is quick to bring these notions down to earth. Teaching financial literacy to kids doesn’t work, he says bluntly. Financial literacy is defined as the ability to make important financial decisions for one’s own benefit.
There are, however, ways to raise the chances that children will absorb sound personal finance principles. One way is to allow them real experience with money – with adult guidance.