Key Takeaways

• Financial literacy is a foundational life skill that supports long-term economic stability.
• Teaching children how to earn money helps them understand the value of work and reward.
• Early saving habits encourage delayed gratification and financial discipline.
• Introducing investing concepts prepares students for wealth accumulation over time.
• Financial education benefits individuals, families, and the broader economy.

Luke Noble is the owner and chief executive officer of Noble Financial Group, LLC, a fee-based financial planning firm based in North Andover, Massachusetts, managing more than $300 million in assets. A graduate of Salem State University with a bachelor of arts in finance, Luke Noble holds multiple professional credentials, including Certified Financial Planner, Chartered Financial Consultant, Chartered Adviser for Senior Living, and Accredited Estate Planner. He has earned advanced education through American College and maintains stockbroking series 7, 6, and 63 licenses. Before founding his firm, he worked as an investment advisor representative with MetLife Securities and later provided business consulting and project management services.

In addition to delivering personalized estate and investment planning for individuals and companies, he leads financial education presentations and workshops for large organizations in the Boston area, reinforcing the importance of financial literacy for long-term economic stability.

The Importance of Financial Literacy Lessons for Young Students

Financial management is a critical life skill that, unfortunately, does not receive its due attention in traditional academic environments. At least 20 percent of lower-income Americans have little to zero financial literacy, according to Pew Research Center; financial illiteracy costs the nation hundreds of billions of dollars each year, per the Financial Educators Council. With this data in mind, many financial experts contend that financial literacy is just as important as math and history for young students in the United States.

Financial literacy, defined as the ability to understand and utilize various financial skills, such as budgeting and investing, helps individuals understand the inherent value of money and guides them through informed decision-making, enabling a lifetime of financial stability. Lucas Noble, CFP, is one of many advocates for equipping children with fundamental money management skills, which empower students to embrace finances as a more manageable part of their adult lives.

Educators and family members should start with age-appropriate tasks that help children understand the concept of earning, or monetary compensation. “My wife and I don’t give our children money; they must earn it,” says Noble. “They clean cars, shovel snow, do lemonade stands, babysit… By earning their own money, they learn the value of hard work and the following rewards.”

After earning power, educators can raise the point of wealth accumulation, or saving. Young people are often eager to spend money as soon as they earn it, but students must appreciate the long-term benefits of setting aside money for emergencies and future objectives. At very young ages, families can introduce this concept in the form of piggy banks and savings jars.

As students grow older, educators and families can enhance wealth accumulation lessons through lessons on investing. Says Noble: “I give my kids 20 cents for every dollar they earn. So if they invest $100, I’ll put in $20 to it, and they’ve got $120, and so on.” These lessons should also include information about the stock market. Studies suggest that Americans between the ages of 21 and 43 with at least $3 million in assets have invested just 25 percent of their portfolio in stocks, compared to 55 percent for investors over the age of 43, but trends suggest younger teens are once again seeing the value of stock investing.

To help educate children about stocks, adults must explain the market in their terms, such as following stocks associated with popular video games or a sneaker brand that children are interested in.

Providing financial literacy lessons to young students can benefit children elsewhere in life. At various stages, individuals will develop an understanding of delayed gratification, as well as the importance of long-term planning, patience, and other traits that will prove valuable elsewhere in life. Children will also learn about the difference between needs and wants, which can help families explain why certain luxury purchases are not possible without devolving into an unproductive argument.

Most importantly, financial lessons delivered early in life provide youths with a head start on planning for student loans, a mortgage, and other major purchases, as well as the volatile economic landscape that can impact a person’s ability to make these purchases. For his part, Noble believes that educating America’s youth can also benefit the financial industry, as financially literate students are more likely to grow into high-net-worth clients. “A financially literate population is the backbone of a thriving and robust economy. These kids will be capable of managing their finances and driving economic growth.”

FAQs

Why is financial literacy important for young students?

Financial literacy helps students develop budgeting, saving, and investing skills early in life. These abilities support informed decision-making and long-term financial stability.

At what age should children begin learning about money?

Children can begin learning basic earning and saving concepts at a young age through simple tasks and allowance systems. Lessons can grow more advanced as they mature.

How can parents teach children the value of earning money?

Parents can encourage children to complete age-appropriate chores or small entrepreneurial activities to earn money. This reinforces the connection between effort, responsibility, and reward.

When should investing be introduced to students?

Investing concepts can be introduced during adolescence once children understand saving basics. Explaining stocks and long-term growth in relatable terms makes the topic more accessible.

How does financial literacy benefit the broader economy?

A financially literate population is better equipped to manage debt, build wealth, and invest responsibly. This contributes to economic growth and long-term financial resilience.

About Luke Noble

Luke Noble is a financial executive and the founder of Noble Financial Group in North Andover, Massachusetts. He holds the Certified Financial Planner, Chartered Financial Consultant, Chartered Adviser for Senior Living, and Accredited Estate Planner designations, along with series 7, 6, and 63 licenses. A Five Star Wealth Manager since 2010 and a Chairman’s Council honoree, he provides estate and investment planning services while also supporting charitable organizations and serving in community leadership roles.