Why Financial Education Matters More Than Gifts for Kids

The holiday season often means kids receive a windfall of cash gifts from their generous relatives. While children may love counting up their mounting money pile, simply gifting them cash misses an important opportunity - financially educating them. Teaching kids money management skills and financial literacy has lifelong benefits that will reward them far more in the long run than any holiday money haul.

Consider these statistics that showcase why financial education should be prioritized for kids:

• On average, U.S. students score just a 48% on financial literacy quizzes and tests according to a study by the TIAA Institute. This showcases a desperate need for more financial education.

• A survey by The Harris Poll found that 91% of adults agree that personal finance should be taught in all schools, while over 80% said they were not offered enough financial education growing up.

• According to research by the National Financial Educators Council, 79% of adults say that lack of financial literacy contributed to their current financial state.

These statistics demonstrate how vital quality financial education is during childhood to equip someone with money management abilities for life. Yet currently, most kids lack access to enough helpful resources to build this knowledge base.

Rather than just handing money to a child this holiday season in a card, parents and family members should consider accompanying it with a small financial lesson. Explain good saving or investment strategies for the future. Open up a discussion about creating a budget. Or help them set a goal to purchase something special with the money received. Hands-on learning opportunities with money during the holidays can impart wisdom no gift alone could.

With more parents prioritizing practical money lessons alongside holiday giving, the next generation can develop into savvy financial decision makers. Let's make financial literacy for youth as big of a tradition as the gifts themselves especially for multi-generational wealth planning.