By Daniel Korleski, MBA
Empowering your children with financial literacy is one of the greatest gifts you can give them. As a parent, you have the opportunity to shape their financial mindset and equip them with the tools they need to plan and make wise decisions with money. By teaching them about finances from an early age, you’ll build their confidence and support them toward smart choices while developing a healthy relationship with money.
But when and how do you even start? Today we’ll share strategies and practical tips to help you navigate the exciting journey of educating your kids about financial literacy.
1. Be an Example
If you want your kids to grasp the importance of handling money wisely, let them watch you make financial decisions and model what you want them to learn.
The number-one money habit children learn from their parents is spending habits—good or bad. If you spend money recklessly, your kids will see that. If you rely on credit cards to cover expenses or argue with your spouse about finances, they’ll accept that behavior as the norm. Your actions set a precedent, so be intentional about how you model money management to your kids and let their watchful eyes be a motivator to change any negative financial habits.
2. Start the Conversation
Since many areas of personal finance aren’t visible, sometimes a silent model isn’t enough. That’s why it’s vital to start the conversation now. Talking to your kids about money regularly leads to kids who are more financially literate. It doesn’t have to be a long drawn-out discussion. Just let them in on your thinking and decision making as you go about your day-to-day life. At the grocery store, explain why you buy the off-brand cereal; at the bank, explain why the bank keeps your money and why you only take what you need from the ATM. These real-world scenarios help cement the whys and hows of money in your child’s mind.
3. Give Them Opportunities
For financial understanding to truly sink in, kids need to experience their own successes and failures. On a practical level, give your 5-year-old money to buy something at the store so they learn the value of different items and realize that, to obtain something like a toy, an exchange of money needs to take place. Try letting your 10-year-old figure out the cost of a new video game, plus tax, and help them save up allowance money to pay for it. Let your teenager buy their back-to-school clothes with a set amount of money.
Seeking out financial literacy classes in your area or online is another great way to introduce the topic of money management to your children. As they get older, you may even choose to guide them in investing some of their hard-earned money, letting them make some of the decisions. It may seem a little scary at first, but we all learn best by doing, so allowing your kids to make mistakes can teach them valuable life-long lessons.
A Partner You Can Trust
As a parent, you strive to provide the best for your children, which includes setting them up with a solid financial foundation. Whether you’re teaching them about budgeting, saving, or investing, having reliable resources and guidance can make all the difference in your level of confidence. At Cobalt Private Wealth, we are here to be your trusted partner to help equip your children with the right financial knowledge. With our expertise and tailored advice, you can navigate the complexities of financial literacy for kids, building their confidence and a brighter future.
Schedule a complimentary introductory meeting with us by reaching out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to start the conversation. Together, we can create a road map for your family’s financial well-being.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and is currently serving as the Board Chair of Catholic Charities of Central Colorado and oversees the Homebound Ministry at St. Paul Catholic Church. He has also served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, President of the Broadmoor Rotary Club, and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. When he’s not working, you can find him traveling around the world with his wife of 25 years, Montse, fly fishing, golfing, and hiking with his rescue pup Brandy and Golden Retriever Quique. To learn more about Dan, connect with him on LinkedIn.
