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A Parents Guide to Teaching Financial Literacy

Many parents often feel unqualified to teach their children the basics of financial literacy. However, only 21 out of 50 states require students to take financial literacy in high school. Three out of every four teens do not feel confident in their financial knowledge, and 73% stated they want more financial education. Finances are an essential life skill and often a complex topic for families to discuss. April is Financial Literacy Month, and at Seed and Stem, we understand how important it is to ensure children get a quality STEM education and provide teens and children well-equipped for a lifetime of financial confidence.

What is Financial Literacy?

Financial Literacy is the confident understanding of savings, investing, budgeting, saving for college, and managing credit cards. Financially literate individuals make money-smart decisions at every opportunity. Instilling the foundations for confident financial decisions in your child will help guide them towards financial success.

Why is Financial Literacy Important?

Financial Literacy is essential for several reasons. It increases an individual's confidence when handling money, but it increases the likelihood that an individual can handle life’s unexpected situations. Financial Literacy can also help:

  • Avoid financial mistakes. Many young adults often max one or multiple credit cards.

  • Financial illiteracy leads to poor life decisions. Currently, near half of all adults have monthly expenses that exceed their monthly income.

  • Banking and Investment strategies. Not only is living within your means essential, but financially competent individuals can employ strategies to build wealth over time.

How to incorporate financial lit into everyday life with children

Breaking such a critical topic down into bite-sized pieces digestible for children is a daunting task. Some ideas to incorporate financial literacy in your home are:

  1. This Coloring Book from FDIC introduces beginner money concepts for children 5-8 years old. The coloring book also comes with a discussion guide for talking to children about the ideas presented in the book.

  2. We talk about the difference between wants and needs. A child may want a new toy, but they need clothing, food, and shelter. Discussing these differences and how they apply to objects throughout the home help children prioritize spending money. Parents can set aside money to purchase items that are not a need.

  3. Play Games that feature money. Monopoly, monopoly jr, or the allowance game introduces cause and effect situations surrounding money that are a great way for kids to learn more about money management.

  4. The U.S. Mint has online games that feature educational games to learn more about coins.

How can Seed and Stem help teach financial literacy?

Even equipped with valuable resources, many parents and families may still

not feel qualified to ensure their child gets all of the financial literacy education needed. Seed and Stem offers an Elementary Financial Literacy Course designed to provide youth ages 8-10 with engaging lessons that will help lead them towards positive financial decisions. The course meets weekly and includes some outside work for students to complete. Our instructors have been certified through the Financial Educators Council to ensure our content is top quality. Students are welcome to join this course for a few classes or join the system in its entirety.


Financial literacy can increase an individual's chances of a successful life. 41% of parents avoid discussing finances with their children. Take some time during financial literacy month to check out our course and begin the conversation with your children on how to become financially competent.

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