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Personal Finance Education: Empowering Children for Financial Success

Personal Finance Education: Establishing Healthy Habits for Life

When it comes to learning about personal finance, many of us weren’t taught enough, or at all, in our formative years. Fortunately, more and more parents and educators are recognizing the value of teaching children about money early on.

In this article, we’ll discuss the importance of personal finance education and interview Dave Kerpen, an entrepreneur, author, and father who has plenty of wisdom to share about teaching kids about money.

Establishing Money Habits in Children

When it comes to money habits, it’s never too early to start. Children are capable of understanding basic concepts like saving, spending, budgeting, and giving.

By giving your child some allowance and providing guidance on how to manage it, you can help them establish healthy money habits that will benefit them for life. For example, you can encourage your child to save a portion of their allowance every week, either in a piggy bank or a savings account.

You can also teach them how to track their spending by keeping a log or using a money app. By establishing these habits early on, you’ll help them build a solid financial foundation that they can build on later.

Lack of Personal Finance Education in Schools

Unfortunately, not all kids have access to personal finance education. Many schools don’t offer any kind of finance courses or require them for graduation.

This means that many young people are entering adulthood without essential financial literacy skills, which can lead to financial strain and stress later on. To combat this, parents can take the initiative to teach their children about money themselves.

There are also many online resources and books available that can make personal finance education accessible and fun.

Value of Teaching Children about Money

Teaching kids about money has many benefits. For one, it can help them become more responsible and independent.

By giving them some control over their finances, you’re empowering them to make their own decisions and learn from their mistakes. Money management skills can also translate to other areas of life, such as time management, goal-setting, and decision-making.

Additionally, teaching children about money can help them gain a better understanding of the value of hard work and the importance of saving for the future.

Interview with Dave Kerpen

Dave Kerpen is an entrepreneur, author, and father of three who has made it his mission to teach young people about entrepreneurship and personal finance. Here are some insights he shared with us:

Kerpen’s Childhood Experience with Money

Kerpen grew up in a middle-class family where his parents instilled a strong work ethic in him and his siblings.

They encouraged him to start his own lawn mowing business at the age of 12, which gave him his first taste of entrepreneurship. He also learned the value of saving and budgeting early on, which helped him achieve financial success later in life.

Important Money Habits to Learn

According to Kerpen, the most important money habit to learn is to spend less than you make. This may sound simple, but it’s a crucial skill that many adults struggle with.

By living within your means and avoiding debt, you’ll be able to save for emergencies, invest for the future, and enjoy a more stress-free life. Realization of Money’s Value

Kerpen became acutely aware of money’s value when he started his first business at the age of 26.

He realized that every dollar was hard-earned and precious, and that he had to be smart with his spending and investments. This realization inspired him to write his first book, “Likeable Social Media,” which became a New York Times bestseller and launched his career as an entrepreneur and author.

Building an Entrepreneurial Spirit in Children

Kerpen believes that entrepreneurship education is crucial for children because it teaches them important skills like creativity, problem-solving, and risk-taking. He encourages parents to help their children start their own businesses, whether it’s a lemonade stand, a lawn care service, or an online store.

By giving kids the tools and resources they need to become entrepreneurs, we can help create a generation of financially savvy and independent young people.

Difficulty in Discussing Personal Finance with Children

Kerpen acknowledges that discussing personal finance with children can be challenging, especially if you’re not comfortable with the topic yourself. He recommends starting with basic concepts like saving, spending, and giving, and gradually building on those as your child grows older.

He also encourages parents to be honest with their kids about their own financial struggles and successes, as this can help build trust and honesty in the relationship.

Importance of Personal Finance Education in Schools

Kerpen is a strong advocate for personal finance education in schools, as he believes it can help address the wealth gap and empower young people to achieve financial independence. He suggests that schools should offer courses on budgeting, investing, and entrepreneurship, and provide hands-on experiences like running a school store or participating in a stock market simulation.

Recommended Personal Finance Book

When asked to recommend a personal finance book, Kerpen suggests “The Automatic Millionaire” by David Bach. This book teaches readers how to automate their finances, save for retirement, and achieve financial freedom with minimal effort.

It’s a great option for beginners who want to learn about personal finance in a straightforward and practical way.

Value of Entrepreneurship Education

Lastly, Kerpen emphasizes the value of entrepreneurship education for both kids and adults. He believes that the skills and mindset required for successful entrepreneurship can benefit anyone, regardless of their career path or aspirations.

By learning how to identify opportunities, take calculated risks, and think creatively, we can all become more resilient, adaptable, and successful in life.


In conclusion, personal finance education is critical for building healthy money habits and empowering young people to achieve financial success. With the right guidance and resources, parents and educators can help children become financially literate, independent, and responsible.

As Dave Kerpen suggests, we can also teach kids about entrepreneurship and the value of money, which can help them excel in all areas of life. So let’s start teaching our children about money today, and help create a brighter, more financially secure future for them.

In conclusion, personal finance education is crucial for establishing healthy money habits in children and empowering them to achieve financial success in adulthood. Sadly, many schools lack personal finance education, but parents and educators can take the initiative to teach children about money management.

Dave Kerpen suggests that parents should encourage children to start their own businesses and be honest about their own financial struggles and successes. Overall, personal finance education is a valuable investment that can benefit everyone, regardless of their career path or aspirations.

So, let’s start teaching young people about money today, and help create a brighter and more financially secure future for ourselves and future generations.

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