Black Parents Push For Financial Literacy As Costs Surge. Some Ways To Teach Kids About Managing Money

Teaching kids fundamentals on key matters like saving, investing and avoiding debt can help them make better future financial decisions.

Among the many who are facing rising food, gasoline, health care, and other surging costs, Black parents are feeling an extra burden. But current financial challenges are sparking an interest in teaching children financial literacy.

Some 78% of Black parents report that their financial stress now is making them realize how important it is to teach their children about handling money, according to new data from Intuit.

Yet nearly 32% question their ability to do that, and 31% wrestle to find an effective way to explain concepts of money to kids, acknowledging they need help. And as they are being more transparent about money matters, Black parents want schools to aid in teaching financial literacy.

Almost 90% want their children to receive financial education beyond what they teach at home and 88% believe financial literacy should be treated as a core subject in school, like math or science.

Fifty-seven percent of parents are more fearful about their child’s ability to ultimately handle the financial “real world” than they do about their academic or career performance. A similar percentage surveyed overall said they received very little or no financial education from their own parents. Intuit provided a breakdown of the numbers for Black parents.

Observers say an important reason for teaching kids about financial literacy is that it can help them develop skills to manage money early on and give them a stronger footing to be successful in their personal and work lives as adults.

Reports show teaching kids financial discipline can help them with making better future money decisions and gain a fundamental understanding of important matters like earning, saving, spending, investing, and erasing or limiting debt.

Black financial literacy experts have long declared that instructing kids about money is vital. It helps build financial stability, affluence, and fosters generational wealth among other benefits.

There are many actions parents can take to help kids build healthy money habits, according to research by BLACK ENTERPRISE. Consider using a clear container to show kids how their money is growing. Regularly discuss the savings as the container fills up with coins and dollars.

Inform kids about the advantages of paying with cash instead of plastic to make purchases and practice that. Youngsters mimic what parents do. Avoid using plastic every time you eat or buy groceries, so kids don’t develop that habit.

As children grow older to teenagers, talk about the value of money and financial responsibility. Consider setting up a bank account and pushing them to save for college once they start working. Those actions can show kids why their role in prudently handling money is crucial.

Further, encourage them to get a job as they get older. Data shows youngsters who do this tend to be better savers. Be sure they are saving part of their paycheck, advise against impulsive spending, and stress expense control. For instance, don’t be afraid to explain that they must pay for their own gasoline once they start driving.

Dave Zasada, vice president of education and corporate responsibility at Intuit, provided tips by email to assist Black parents. He says one of the most important things for parents to do for financial education in the home is to help kids understand the basics early. That includes distinguishing between wants and needs, how to budget, and how everyday financial decisions add up over time.

“These are the building blocks that make more complex concepts, like managing debt or understanding interest, easier to grasp later,” Zasada said in the report.

He added parents should be aware they don’t have to carry the responsibility alone. “There’s a clear demand for more financial literacy support beyond the home, which is where schools and structured programs are stepping in.”

Through Intuit for Education, for instance, he stated students can engage with interactive, real-world simulations that mirror financial decision-making experiences they’ll face in adulthood, from budgeting to taxes and credit.