Money, math, and meaningful reading

Dr. Artika Tyner

Financial literacy is the ability to comprehend and apply essential money management skills. These include saving, investing, budgeting, giving, and debt management. Having the knowledge to make informed decisions about one’s finances will ensure financial stability and security in the long term.
The month of April is recognized as National Financial Literacy Month. This is a key opportunity to learn, grow, and lead. Financial literacy is a term most people only get to hear when they are older, but these skills are best honed when introduced at an early age. When imparting this knowledge to children, it should be engaging and conversational, with hands-on learning experiences. Incorporating everyday experiences such as basic conversations, reading stories, and basic math lessons can equip children with the necessary skills to develop healthy financial habits. This is vitally important when one in five students lacks basic financial literacy knowledge. By adulthood, this lack of financial knowledge costs $948 annually on average. Therefore, it costs the nation billions of dollars each year (NEFC).

Teaching kids money concepts through books and stories
Reading books and storytelling have been found to leave indelible imprints on the minds of children. This method is especially useful when introducing financial concepts to children. They can learn how choices are made by the characters in the stories and how these choices affect their financial outcomes.

An example is how a grandfather teaches his grandson about the power of savings. He decides to save for his new djembe drum (Kofi Goes to the Bank). Or when a young girl saves the money from her birthday gifts to reach her dream of owning her first stock (Akua Loves Math). These books teach the child values such as planning and budgeting.

Building vocabulary through everyday financial conversations
Having conversations around finances plays a key role in developing a child’s financial vocabulary. Using words like ’live, earn, budget, plan, save, invest,’ may sound like everyday words, but these form the foundation of financial education. These words should be introduced naturally by First Educators through daily engagements with children.

“First Educator: refers to the fundamental primary role that parents and caregivers play in a person’s early development and education. They instill essential life skills, morals, and behaviors.”

First Educators create enriching learning experiences. While grocery shopping, they explore why one product is chosen over another. They use the opportunity to explain to the child which product has better cost or value. Participation in family purchases not only builds the confidence of a child but also helps children become comfortable with financial terms. Conversations around these topics will encourage children to think critically about spending decisions.

Connecting money with basic math skills
To understand financial literacy, one needs to possess basic math skills. These can be developed through everyday activities with children, such as counting, adding, and comparing the costs of products.

A child taking into account how much they have saved with their parents or in a piggy bank teaches them how to count. Another way is by encouraging children to add up the total cost of family purchases. Older children might find this exercise very useful as it clearly demonstrates how math is employed in real-life scenarios. When math becomes more practical and meaningful, young people are more likely to develop competence in both financial and math skills.

Age-appropriate ways to introduce budgeting and saving
Introducing budgeting and saving should be done progressively. This knowledge should be rolled out in ways that match a child’s age and level of understanding. At earlier stages of a child’s development, preferably between the ages of 4 – 7, activities such as a piggy bank saving can be introduced. This equips children with the basic idea of saving and also recognizing the difference between wants and needs.

Between the ages of 8 – 12, children are more developed and better understand money management by this stage. Children can be assisted in starting to set small savings goals and managing their allowances. This will help them understand responsibility and planning.

Teenagers have a higher level of understanding and can therefore begin learning more structured financial habits, such as creating simple budgets. This can even be done using applications found on smart devices. Young people should be taught planning for personal purchases, which will help them make informed spending decisions.

Role of schools, libraries, and communities
Schools, libraries, and community organizations play a vital role in the promotion of financial literacy among young people. Educational programs and reading clubs can introduce children to books, stories, and activities that equip young people with money management skills.

Libraries provide a valuable space where young people can have access to and explore stories about saving, values, and stories of young entrepreneurs. Community support for financial education helps create societies where children learn skills that will not only benefit them but also the community benefits from the ripple effect of financial independence of its members.

Raising financially responsible readers
For individuals to be able to make informed and responsible financial decisions, they need to be equipped with financial literacy skills. By combining storytelling, everyday conversations, and real-life experiences, First Educators can make financial education practical and memorable.

This can help children build strong financial habits from an early age. When young people are taught the values of saving, budgeting, and investing, these habits stay with them and help prepare them for a future with improved financial stability.

Through her organization, Planting People Growing Justice Leadership Institute, Dr. Artika Tyner offers resources to foster literacy and education.