79% of Americans aren’t confident their children’s lives will be better than their own — a record high. Here are 5 ways to give your kids the best shot at financial success

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Provide lifelong financial lessons for your children.

If you fear your children’s lives aren’t going to be better than yours, you’re not alone.

According to John Pelletier, director of the Center for Financial Literacy at Champlain College in Vermont, only about 30% of public schools teach students financial literacy. Until school is more involved, parents need to take the lead on teaching their kids.

A March 2023 survey showed that 78% of respondents didn’t feel confident that their children would have a better life than they’ve had, while 44% feel their finances are in worse condition than they expected at this stage of their life.

The survey, conducted by the National Opinion Research Center (NORC) at the University of Chicago, with funding from the Wall Street Journal, surveyed 1,019 people to get a read on how Americans feel about their personal finances.

The 78% of Americans who don’t feel their children would live a better life than them represents the highest percentage since NORC began asking the same question every few years as part of its General Social Survey in 1990.

While there are high levels of pessimism, that’s no reason to not give your kids the best chance at financial success. Here are five ways to help them make the most of their money.

Start your kids’ financial education early

Children as young as five have shown the ability to develop a relationship with money, according to a study out of the University of Michigan. Researchers discovered that kids had distinct feelings about spending and saving, which affected their behaviors with their own money.

The researchers also suggest that parents should start talking to their children about money early so they can develop healthy spending habits.

Getting your kids involved in everyday activities like grocery shopping and comparing prices on items is a great way to start their financial literacy education.

For young children, explain how much things cost and let them see how you pay for them. They may begin to realize that things aren’t free, and watching you engage with your credit or debit card will get them asking questions.

As your kids get older, if they start earning an allowance, you can use this as an opportunity to teach them about saving.

An effective visual aid, If you use cash as a form of allowance, could be the use of a clear or transparent piggy bank. This will allow children to actually see their savings grow — and watch them shrink as they spend their money.

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