Why your kids need to learn from you and TikTok (kind of)
Studies have shown that 79% of Gen-Z learn from social media. Social media can be great for a quick laugh, the news (sometimes), and other events. While there is a range of information available, social media can be harmful, especially when it comes to financial education.
Inaccurate information has been happening since the beginning of the Internet. Now, it is no different; with the rise of AI, it can be even more challenging to spot deceptive information.
If your kids are already on social media, I don't think stopping entirely is realistic. Instead, focus on understanding. Personal finances are personal, so not everything online will apply to them, and not everything is accurate.
Here’s where I think parents should come in. Children will inherit their financial habits from you, their friends, and/or strangers on the Internet. Why not let it be you?
Personal finances shouldn't be generalized. It depends on the child and the parent/caregiver.
Does your child respond well to chores?
What are their relationships with aunts, uncles, grandparents, and friends?
Does the idea of work excite them?
Are rewards something they respond well to?
Do they appreciate experiences over things?
No one child is the same.
Keep the lines of communication open. Instead of saying no, explain why this option is not a good option right now (not every time, but when an explanation is warranted). Reinforce the child to use their own money to purchase things. I am reading a book called Captivate Your Kids: Teaching Teens Financial Independence - a couple over the weekend recommended it. It offers incredible insights; their kids are in their 30s and pretty good with money.
Learning from the school of hard knocks is also a good thing. Sometimes people learn a lesson only after experiencing it for themselves. Life and being on your own are great teachers.
Learn together. If you’re unfamiliar with a topic, grab a Certified Financial Planner or a financial educator and learn together.
The ongoing conversation about money is key. Parents should create a safe and open environment for discussing finances, sharing mistakes, offering guidance, and connecting children with experts. By keeping the conversation going, kids can learn valuable lessons both from you and from platforms like TikTok, making you their primary financial educator.