What to Teach About Money to Kids in Secondary School?
Our kids are growing up. We should show them all functions of money and what can be done using money as a tool.
I read a very beautiful quote: "The energy of your intention is what determines your life."
I hope that we will be in a positive, grateful and developing approach away from greed and selfishness while teaching our children anything on any subject. Money is an indirect and direct part of our daily life and all of our lives. If you remember, I outlined what we can teach our children about money in kindergarten and elementary school. Today it's time for the bigger ones: secondary school kids!
Let’s start!
Teaching Money Concepts to Kids in Secondary School
We can teach our children who are in secondary/middle school, a little more encouragement and responsibility and maintain their continuity. As kids enter secondary school, they are starting to take on more responsibility for their own finances. They may be getting an allowance, starting to work part-time jobs, or even applying for student loans. This is a great time to start teaching them about the importance of money management.
These ages are very good times to talk about mostly money is a tool, not a cause, not the main source of happiness. It is how important to share the money with donations and its meaning. Then let’s summarize the concepts those we can teach our kids in secondary school.
Saving money and investing
Saving money and investing are important financial habits that can be started at a young age.
For secondary school kids, saving money can help them to:
Afford their future goals
Build their financial security
Learn about money management
Investing can help kids to:
Observing how growing their money over time
Learn about the stock and crypto markets
Build their financial future
There are a few things that parents can do to help their secondary school kids save money and invest:
Open a savings account for them: This will give them a place to start saving their money.
Teach them about budgeting: This will help them to track their income and expenses and make sure that they are not overspending.
Help them to set financial goals: This will give them something to work towards and help them to stay motivated.
Encourage them to invest: This can be a great way for them to grow their money over time.
Ways to earn passive income
Maybe not during their secondary school ages but in near future they can start earning passive income. For this reason teaching them what is passive income and the ways to earn might be good topic.
There are a few ways that secondary school kids can realize and understand -even try to earn- passive income: Create a blog or website, start a YouTube channel, Sell digital products, Invest in stocks or bonds, Rent out a room or property.
It's important to note and explain them that passive income takes time and effort to build. There is no quick way to get rich. However, if you're willing to put in the work, you can create a passive income stream that will provide you with income for years to come.
You can give these tips too:
Start small: Don't try to do too much too soon. Start with one or two ideas and see how they work out.
Be patient: It takes time to build a passive income stream. Don't expect to get rich overnight.
Be consistent: The key to earning passive income is to be consistent. Keep creating content, keep investing, keep renting out your property. The more consistent you are, the more money you'll make.
Have fun: If you're not having fun, you're less likely to stick with it. Choose passive income ideas that you're passionate about and that you enjoy working on.
Abundance mindset
This is a belief that there are enough resources in the world for everyone to have what they need and want. People with an abundance mindset believe that they can create their own success and that there is no limit to what they can achieve. They are also more likely to be generous and helpful to others. You can believe or not but I fully agree and believe in this and I always keep my abundance mindset. I see how it carries me one step further.
Donating
Donating is the act of giving something, usually money or goods, to a person or organization in need. It is a way to help others and make a difference in the world.
When teaching a secondary school kid about donating, it is important to start by explaining what it means. You can use simple language and examples to help them understand. For example, you could explain that donating is like sharing something you have with someone who needs it.
Once they understand what donating is, you can talk about there are many different ways to donate. You can donate money, goods, or even your time together with your children and let them see the process and the effects.
When choosing a charity to donate to, it is important to do your research. You want to make sure that your donation is going to a reputable organization that is using the money wisely.
Donating is a great way to teach secondary school kids about the importance of helping others. It is also a great way to instill in them a sense of compassion and empathy.
Types of personal assets
Assets are items that you own and that have value that can be turned into cash when needed.As you can revisit and see what can be the assets in pillars of personal finance:
Cash money
Life insurance policy
Private pension plan
Gold and other valuable metals
House
I hope these above ideas will help you to talk about money concepts with your kids who are in secondary school. Please share with us your perspective and ideas in comments.