Do your children understand the value of money? If the answer is yes, you must pat yourself on the back because you are part of a small minority of parents.
As a mother of two, I can tell you that the answer to that question is a resounding “No!” for a majority of children growing up in 2024. So when our guest in this weeks’ Founder’s Spotlight said that empowering teenagers with financial literacy is her passion project, I was intrigued to say the least. You see, we live in strange times when parents are making up for lost time with their kids by buying them presents and expensive toys. Speak to a parent and he or she will tell you that they’re locked in an endless loop of fulfilling demands for the latest PlayStation or Marvel Avengers’ character.
Marilyn Pinto wants to empower children with the gift of financial literacy. “I have two kids and wanted them to learn important life skills,” she tells me. “It is sad that financial literacy is not treated as an important life skill by schools. Ask any adult today about a skill they wish they had learnt in their childhood. A majority would say they wish they had learnt about money earlier.”
Founder of KFI Global tells us why it’s important to teach children the value of money.
Pinto has converted her passion project into a profitable business. She is the founder of KFI GLOBAL, an education company that specializes in teaching teenagers and young adults how to handle money smartly and responsibly. She has interacted with more than 3500 students and taught them how to make smarter decisions when it comes to money. Pinto and her company have partnered with some of the biggest and most respected institutions in the region like Dubai Islamic Bank, Emirates NBD and National Bonds.
“I make it very clear to our partners. We are educators, not marketeers,” she tells me. “What has us going is the belief that financial literacy is a social justice issue. We’re talking about gender equality, wealth equality and societal inclusion. Financial empowerment plays a big role to facilitate all of it.”
KFI, under Pinto’s leadership, offers different programs customized to a parent or client’s needs. There’s “Financial Empowerment” which teaches money management as a skill, “SUPERMIND” which teaches mind mapping as an effective way to learn concepts faster, and “Entrepreneurship with a twist” which teaches young teens how to solve problems, to make mistakes, and develop an “entrepreneurial mindset”.
How do you make children understand the value of money? How do you explain to them that a toy every week, or the latest gadget, isn’t a pre-requisite to happiness? How do you explain a concept which even adults find hard to grasp in the age of over-consumption?
“Kids as young as 9 can grasp concepts like impulse control and delayed gratification. Once they’re 11, you can start talking about money with them,” says Pinto.
But can parents instill these values in their children in 2024? With an increasing workload, risings costs of living and demanding work schedules, most parents resort to the “reward system” of parenting. This basically means they reward their child with gifts, gaming time and expensive toys to encourage them to do better.
Pinto advises, “It is certainly not easy. Our instinct is to shield our kids, keep them in a bubble and remove any struggle from their lives. The instant gratification culture isn’t good for anyone. As parents, we tend to shortchange our kids as far as their understanding of concepts goes. But kids will meet you halfway if you take the trouble to explain concepts to them.” Pinto has worked with children as young as 6 years old.
All this sounds great on paper but I have to ask Pinto about Generation Z, the cohort born between 1997 and 2012, and also the youngest generation entering the workforce globally as of now. This generation is the focus of pop culture, consumer branding and HR nightmares. It is the generation that wants it all but not at the cost of their health, both mental and physical.
So how does Pinto view the struggles of Gen Z? Are they financially prudent?
“Gen z has created a ‘gig economy’. Unlike previous generations, they do not believe in creating a safety net; they are part of multiple gigs at one point,” says Pinto.” What she’s saying is backed by statistics and research. According to a recent survey,  46% of Gen Zers from ages 18 to 27, rely on financial assistance from parents and family. The Bank of America’s Better Money Habits financial education team revealed that 52% of those surveyed said they don’t make enough money to live the life they want and cite the cost of living as a top barrier to financial success.
“The problem is, Gen Z thinks that all this talk of money is just Math, and that it is not relevant to their career,” says Pinto. She advises Gen Zers to empower themselves with these life skills and not wait till they get “older”.
“Financial literacy is very complex, it’s very personal,” she says, reiterating that it cannot be learnt on social media.
So before you give your child a debit card, do ensure you teach them the value of money.
