By Gordon Chavez, financial reporter
Like my good friend Jimmy Diaz says, “As a parent, I think financial literacy is important because kids are growing up fast and will soon have to manage money and real-life responsibilities on their own.”
As summer begins and school schedules slow down, many families are looking for ways to keep their children active, learning, and growing. While sports, vacations, and family gatherings are important, summer is also a great time to begin teaching our youth something that can impact the rest of their lives—financial literacy.
Many adults today were never taught how money works. We learned through trial and error — sometimes through debt, financial stress, or difficult experiences. But what if we could help the next generation start earlier?
Financial education does not have to be complicated. It can begin with simple conversations about saving money, budgeting, needs versus wants, and how credit works. Small lessons today can become life-changing habits tomorrow.
One important lesson is understanding that where you keep your money matters. Inflation slowly reduces purchasing power over time. If inflation is around 3.8%, your money would need to earn at least that much annually just to maintain its value. Meanwhile, the national average savings account interest rate is around 0.61%, which often does not keep pace with inflation.
I’ve helped my boys open high-yield savings accounts earning around 3.5% to 4%. It may seem like a small step, but teaching young people early that money can either grow or lose value over time can change how they think about finances in the future.
Jimmy Diaz’s son Jordan Diaz, a college student, shared, “As a college student, financial literacy is important because a lot of students are already dealing with budgeting, student loans, and credit cards for the first time.”
As a community, we often talk about wanting better opportunities for our youth. Financial education is one of the most practical ways we can empower them for the future. This summer, even one conversation about money could plant a seed that changes a young person’s life forever.
