Financial education encompasses a wide range of abilities and knowledge that enables people to properly manage their money, going beyond simply comprehending the value of currencies and bills. Children who are taught economic education from a young age are given the skills they need to make wise financial decisions as adults.
Echelbarger, Margaret, assistant professor of marketing in the Stony Brook University College of Business, researches how children develop as decision makers, particularly financial decision makers.
Echelbarger clarified that children don’t always comprehend advertising’s persuasive intentions. Children as young as babies are exposed to advertisements through YouTube, demonstrating that children are being prepared to get consumers from the moment they are born. It can be challenging to tell an advertisement from normal content, especially on social media.
Children are also exposed to online currencies in games like Roblox and Minecraft, which can be perplexing for kids because they aren’t using the currency themselves but rather purchasing coins, dollars, or other items to advance and succeed in the game. Parents wonder what they can do to support their kids in becoming responsible consumers and making wise financial decisions as they are inundated with advertisements and communication.
Echelbarger emphasized that it is a pleasure to avoid discussing income because, for instance, low-income families might not be able to do so. More generally, children shouldn’t be forbidden from talking about money or finances because doing so could backfire because it suggests that parents should not be consulted if the child is having a problem.
First economic socializing experiences, which include things like talking about money, are linked to better financial health outcomes among young adults, according to Echelbarger. In fact, a lot of Millennials say they wish their parents had discussed cash with them more.
According to Echelbarger, adults have a special opportunity to motivate kids by speaking to them in age-appropriate and understandable ways and by serving as role models for good financial behavior. A discussion about looking for and shopping for price items, manufacturer and cost comparisons, and a food funds may be sparked when you go to the grocery store.
According to Echelbarger, the holidays are a chance to introduce children to discussions about money and charity in less overt ways as well as to convey the family’s financial values through donations or company work.
She continued, “The sooner we discuss money with kids, the more confident and self-assured they’ll remain.” Saying to a child that you might not know the answer but that it is something you can study jointly is valuable for adults who do not think financially educated themselves.
How virtual money is altering how youngsters spend money was the subject of an interview with Echelbarger on the Wall Street Journal radio Your Money Matters in November.
People can register on Echelbarger’s Child Consumer Behavior Lab site to learn more about upcoming research studies or go to the test on Instagram to read about suggestions for raising healthy kids.
In this world, we are unable to avoid money, so we must give our children hope. Giving them the tools they need to make wise economic and decision-making decisions is one way we can achieve that, according to Echelbarger.