October 22, 2026 Life Insurance

Teaching Kids About Money and Life Insurance

There is a good argument to be made that financial literacy should be as central to childhood education as reading or math. The ability to navigate one’s finances is essential for achieving a high quality of life; however, a significant portion of Americans lack these capabilities. According to a 2025 National Financial Capability Study survey completed by the Financial Industry Regulation Authority (FINRA), only 27% of adults could answer five out of seven questions in a Financial Knowledge Quiz.

By teaching these values early, parents can help their children build a strong foundation for future success. Here are some practical tips to introduce children to these essential concepts.

Avoid the Abstract

Teens are not particularly noted for their ability to plan ahead. Of course, “planning ahead” is one of the foundations of financial literacy, which can make teaching teens something of a challenge.

However, there are ways to make these concepts less abstract. For instance, parents can devise a hands-on experience. Lend your child $50 and stipulate that they have to pay it back by a given time. If they miss their payment, start adding interest (it can be nominal - 50 cents per week). Even if they never actually manage to pay you back, the (ideally low-stakes) pressure induced can teach them responsibility and the importance of honoring commitments.

Share Your Own Experience

Again, the less abstract you can be here, the better, especially when it comes to a subject like life insurance. You don't need to provide specific numbers, but it can be worth outlining for your child the variety of expenditures your family makes in a given month: mortgage, tuition fund, groceries, etc. As children mature, broader discussions about financial planning can include how families prepare for unexpected changes through budgeting, saving, and long-term planning tools.

It may be a difficult conversation, discussing the need for life insurance, but it can be beneficial. Handled sensitively, the subject of life insurance can broaden into important, necessary conversations about prudence, foresight, and the importance of preparation, financial planning or otherwise.

This article is for educational purposes only and does not provide financial advice or insurance advice.

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Southern Farm Bureau^® Life Insurance Company offers life insurance in Arkansas, Colorado, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia.

Life Insurance products are offered through Southern Farm Bureau Life Insurance Company, Jackson, MS.