But unfortunately, money still seems to be a taboo educational topic even among families.
But for those who did talk about money, just 18% earn less than $50,000 a year.
And 40% of people who did not discuss finances growing up currently have no savings at all.
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That figure drops by more than half among those who did receive early financial education at home.
And unfortunately, kids often dont get to learn money management topics in school, either.
Only21 states require personal finance educationin order to graduate high school, according to the Council for Economic Education.
That leaves it up to parents when it comes to teaching kids about money.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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But dont put off teaching your child about finances until you think you have all the answers.
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1.
It can start with something simple like: We have $50 extra spending money this month.
When theyre ready, you could take the next step byopening a bank accountfor your child.
That way, banks wont seem as intimidating when your kids open their own accounts as adults.
It starts with understanding where the money comes from (the ATM doesnt count).
And they dont need to be rich to start (and neither do you).
So how can you teach kids the difference between bad and good debt?
Remember these two factors:
Whats the interest rate?
Whats the value of the item theyre going into debt for?
Borrowing money to buy a candy bar?
Borrowing money to invest in a mower so you could start making money cutting the neighbors lawns?
Good debt (since theyll in theory be using that borrowed money to make more money).
Start talking to your teens early about how student loan debt could affect their lives after college.
Each time they make a payment to you, they can color in another section of the chart.
TIffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Dana Sitar contributed to this post.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
