Since 2003, April has been designated "Financial Literacy Month" by the federal government, and for good reason. Although most would agree it's important for people to learn - and preferably learn early - the life skills that will set them up for financial success, studies consistently indicate Americans are generally not sufficiently educated about their personal finances.
 
The respondents in Georgia Credit Union Affiliates' 2016 end-of-year survey strongly agree that financial literacy is important to a child's education. On a scale from one to five (where five is "extremely important" and one is "not important at all"), parents ranked the importance of teaching their children about finances an average of 4.7. Without a doubt, they recognize how essential a formal financial education is for children.
 
That said, when respondents were asked about how they received their financial education, an overwhelming 65.3 percent said they learned from experience or life lessons. Despite the widely accepted belief that parents should play a part in teaching their children financial literacy, only 18.3 percent indicated they received financial education from their parents.
 
The overwhelming demand for financial literacy training and simultaneous lack of access for Georgia consumers aligns closely to national trends. And when parents fail to educate their children about finances, schools don't always fill the gap. While the demand for financial literacy courses in high school is nationally apparent, the Council for Economic Education says only 17 states (including Georgia) require students to take classes in personal finance.
 
In a survey by the National Financial Educators Council about which high school-level course would have benefited participants the most, 54.1 percent stated a money management class would have been the most useful.
 
Insider's Perspective:

Trish Payne, president and CEO of Savannah Schools Federal Credit Union told GCUA that teaching children financial literacy is important and it isn't just one person's responsibility, but should be a collaborative effort amongst parents, schools and financial institutions.
 
"I do think it's hard for parents," said Payne. "I find that people who are financially savvy, they find it easy, but if they are struggling with their finances, they find it difficult to communicate to their kids about money."
 
Payne said the struggle likely stems from finances being tied to people's emotions.

"Many times parents don't want to admit their failures, so they don't feel prepared or knowledgeable enough to discuss it with their children," Payne explained. "But, if they could share their experiences instead of hiding them, their children could learn from those setbacks."
 
Payne suggests the most important thing is to teach children and young adults to live within their means, and to prepare for emergencies so they won't have to borrow money to get out of an unexpected situation. It's also crucial to teach them basic concepts such as capacity and compound interest.
 
"I would advise parents to remember they have to face their financial troubles, they don't just go away," she said. "There's nothing to be embarrassed about. If there's something they don't understand, they should ask until they do and then share that information with their child. A credit union would be a great source for that."

Despite a lack of formal education opportunities, there are a multitude of easy, convenient resources parents can leverage to put their children on the path to financial health.

Financial Literacy Tips:

Start now and involve the family - There is a lot of information to increase personal financial literacy that is appropriate for all ages and levels of wealth. Start now right where you are. Use age-appropriate activities, including games and challenges to make it fun for kids, and get the whole family better educated about finances.

Find a personal finance app - Using a personal finance app is an easy way to put money management at your fingertips and help you stay on track with your financial plans. There are many no- and low-cost apps available to help you budget, invest or pay bills automatically.  Check the user reviews to see what aligns best with what you're looking for in a financial tool.

Take advantage of online resources -  The U.S. government sponsors www.mymoney.gov, which is dedicated to teaching the basics about financial education, including topics like buying a home, balancing a checkbook or investing in a 401(k) plan. The Georgia Consortium for Personal Financial Literacy's website at www.georgiaconsortium.org is also a great resource for lifelong learning tools.

Consult your financial institution - According to GCUA's survey, only 3.4 percent of participants received formal financial education from financial institutions. However, about 80 percent of Georgia credit unions offer structured financial literacy programs like classes and counseling, and all of them can be counted on for trustworthy advice.