KATY, Texas — April is recognized as Financial Literacy Month, a time to promote the importance of educating individuals on how to manage their finances effectively. Financial literacy is the ability to understand and make informed decisions about financial matters. This can range from basic money management skills, such as budgeting and saving, to more complex financial concepts like investing and retirement planning.
Marina Rivera, SVP, Chief Lending and Retail Experience Officer at Members Choice Credit Union in Katy, believes that financial literacy should start at a young age.
"When your kids are small and they're excited to go to the grocery store, it's probably time to start having little conversations about making financial choices," she said.
She recommends involving children in family budgeting and encouraging them to prioritize needs over wants. Rivera also suggests participating in events such as Lemonade Day, where kids can learn about income, expenses and profit by operating their own lemonade stand.
As children grow older, Rivera believes it's important to continue teaching them about financial management.
"Teaching those lessons that are going to follow them through their first job as they move to college," she said.
She encourages parents to be intentional about speaking with their children about finances and allowing them to make their own financial decisions within set boundaries. This can include creating separate buckets for saving, spending and sharing money.
Rivera emphasizes that financial literacy is essential for everyone, regardless of their financial situation.
"Even if you don't have that weekly allowance coming in, [there] are still ways to teach your kids about money," she said.
By starting early and continuing to teach financial management skills throughout life, individuals can become more confident in their ability to make informed financial decisions.
To learn more about Members Choice Credit Union, click here. You can sign up for Lemonade Day here.