By: Maria Correa

New research shows that kids aren’t getting the education and experience they need at school - or at home - to become successful with managing financial decisions as adults.

The Wall Street Journal reports that more math studies, fewer finance studies, leads to better financial decisions as adults. When children had more math education at school, they were able to apply their skills to financial comprehension later in life. And at home, adding real-world conversations around finances to that list of sometimes uncomfortable things to talk to kids about (like sex, for example) instead of keeping the issues only between grownups, can help the kids understand and prepare for how finance works in the real world.

Conversely, when children aren’t talked to about money in rational ways, they look at it emotionally. They may see money as power, e.g. a way to win friends or improve well-being, even when they become adults. Or, they may see it entirely as costs and benefits and believe money, not people in their lives, can help them emotionally.

Finally, kids learn best when there is a practical use of financial learnings. If an adolescent needs a loan for college or a car, that’s the time to talk about how loans work, not years before they are ready.

These are important learnings, and not just for kids and their parents. When a child asks you why you can’t buy them the expensive gift they want for their birthday, or why you can’t afford a new car, be as honest as you can as to why. When you’re out with them, give them the budget you will spend on them for the day. It will involve simple math skills they need to master anyway. And when they are older, offer to help them with financial decisions like investments, charitable donations, and budgeting when they travel with friends or go to college.

For more ideas by grade level, visit WSJ.com.

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Published February 10, 2015