teaching our youth financial enjoyment in financial literacy
Did you know that those money apps you use, gamify your management of your finances? Your savings tracker, the graphs that appear to display your spending, the “Congrats” message you receive to celebrate your milestone… it gives you a rush similar to that of playing and winning a game.
Your brain LOVES to have fun. Enjoyment is something we are all drawn to, yet we have made finances to be the bane of our existence. To many, facing our bank account is almost as scary as being confronted by a bear. No wonder we haven’t managed our finances. What if we made it fun? What if we gamify it?
If you don’t already use a finance app, one of the easiest ways to “gamify” your financial experience is to use one that has already created this experience. A great app for general money management is Mint. With credit management, financial tracking and the ability to integrate quickbooks, it is all you need to get started in understanding your personal finances.
While managing what we currently have is a great first step, investing is a big part of setting yourself up for a successful financial future and the Acorns app is a fantastic way to start small. Even if it’s simply rounding up to the nearest dollar and investing that spare change - Acorns will invest your money and allow you to withdraw it at any time. This low risk investment will give you that little serotonin boost every time you log in and see what your investments are at that day.
Starting small and having fun is key to sticking with a long term solution for a financially secure future. It will also show your kids that money doesn’t always have to be this massive stressor. It can be effortless and exciting!
How our kids view our money experience is key to their financial liberation. A fun and approachable way to encourage your child to save is by using a simple savings tracker like (insert our financial tracker). Encourage them to set a savings goal that is realistic, set a date and break down how much they would have to “put in the pot” each day/week in order to reach their goal. Want to sweeten the goal? Incentivize them with an additional amount for every small milestone they reach.
While it is necessary to give them the freedom to save for what they truly desire, encourage them to save for experiences above items over time. Meaningful experiences with friends, loved ones, favorite artist, will create a lasting impact that items can simply not provide. Since money is with us for the long haul, it is important to remind our kids what it feels like to have these experiences that provide the enjoyment sustenance that is unforgettable.
Perhaps it has been a while since the family did anything that everyone enjoyed, now would be a great time for you to put your money where your mouth is and display your own savings goals for the family’s next adventure. Display a physical tracker in a communal space that acts as a countdown. Chances are, you could use the excitement as well!
It may seem like these are no-brainers, but THAT is the point. We start so big and get overwhelmed quickly. If we are going to teach our children to pursue financial freedom, we have to make it a positive experience and avoid being overwhelmed as much as possible.
This Ted Talk from Sirisha Kuchimanchi is a fantastic resource for teaching financial literacy to your child (and it is only 13 minutes long).
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