This post was originally published on Defender Network

By Laura Onyeneho

Financial literacy is an essential skill that lays the groundwork for future financial well-being and success. With April being Financial Literacy Month, there’s no better time to discuss how parents can play a crucial role in imparting these fundamental lessons to their children.

The notion that financial literacy should be reserved for adulthood is an outdated one. Waiting until one has entered the workforce to learn about money matters often proves to be too late. Experts assert that there’s no such thing as being too early to introduce children to financial concepts.

The unpredictable job and housing markets have proven the need for ongoing financial education, even for adults. Teaching children the fundamentals of credit, debt management, savings, and investing not only equips them for financial independence but also provides an opportunity for parents to deepen their own understanding of the evolving economic landscape.

Marina Rivera, the chief lending and retail experience officer for Members Choice Credit Union, brings a wealth of expertise to the table when it comes to guiding families toward financial literacy. With years of experience in the banking industry, Marina understands the importance of instilling sound money management practices in children from an early age.

Rivera shares valuable insights into the role of parents in teaching financial literacy to children, the impact it can have on their future financial well-being, and the resources available to help parents navigate this important aspect of parenting.

Defender: Why is it important for parents to start teaching their children about financial literacy at a young age?

Marina Rivera : They say a lot of the good things start at home. As a parent, you are your child’s first teacher. When kids are small, they are learning how to count and say the alphabet, and then gradually they become more advanced with their skills.Teaching your kids as they come up is a great way just to make it a part of how they’re to be financially savvy. This is a life skill.

Defender: How about parents who weren’t taught financial literacy themselves, how can they help their children?

Rivera : I grew up in that kind of family. My mom and my dad were divorced, and so there were two separate households. We knew that there were budget constraints in both households. We never got to see what was really going on or how budgets were made. Money conversations were a private conversation among grownups. Talking about money wasn’t as transparent as it is these days.

I think even starting as early as five years old, we can see that there’s some budget decisions and money involved in their daily lives. So just kind of taking those opportunities that we see in our everyday life and having conversations with our kids so that it becomes a topic that’s not taboo. It becomes a topic that we just talk about in our everyday activities.

Defender: What are some foundational financial concepts that parents can introduce to children?

Rivera : I think just having some transparency. For example, when you go to the grocery store, make an activity out of it. Buy something and ask your child “How much money do we have left?” Because that kind of lesson you can take with you, especially when you move on and you get your first apartment and maybe you only have $50 for the week. How are you gonna make that $50 last? And are you able to prioritize what we need to make it through the week? If your children want to buy their parent a gift, ask them what chores they need to accomplish in order to earn the money to buy the gift.

Defender: What role do checking accounts play in teaching children about money management and financial independence?

Rivera : Having a good relationship with your bank is very important. I think that is something readers should strive for. Find a bank where you feel comfortable, where if you have that financial question, you can ask it and there’s not gonna be any judgment. In today’s world because everything’s changing so fast. We are dealing with digital currency now; there is so much to learn and research to keep up with the times. Regardless, it’s important to learn the basics early on. Checking accounts can provide the flexibility you need to send, track and restrict spending to help them learn responsible money habits.

Defender: What should be in the parents money tool kit?

Rivera : At our credit union, a parent and a 10-year-old kid can open up what we call a student saver checking. Try an allowance system to teach them about budgeting and responsible spending. Financial apps are another interactive way to learn about finances as well as role-playing scenarios where they act as consumers and savers.