Learn the basis

Idon’t want to give any advice to a 19-year-old, because I want a 19-year-old to make mistakes and learn from them. Make mistakes, make mistakes, make mistakes. Just make sure they’re your mistakes. Fiona Apple

So my oldest child turned 19 on Yom Haatzmaut (Israeli Independence Day). It must be her birth date because she loves Israel. Maybe because she is the oldest, but when it comes to money matters I can see that she has actually incorporated a good deal of the education she has received at home. She is conscientious about not spending frivolously, and saves for things that are of great importance to her. Pretty much her only failing is her continued resistance to paying us rent! Happy birthday and may you continue to contribute to Israel in a positive manner.

I mentioned that she received her money skills at home. She never received financial education in school, and in fact it’s really not emphasized in the Israeli curriculum. Maybe that’s why we live in a culture of overdraft.

This is not a problem specific to Israel. In the UK, the issue is just as bad. FT.com writes that according to the Young Person’s Money Index report from the London Institute of Banking and Finance, “Although financial literacy has been part of the National Curriculum since 2014, just 8% of young people said they learned the most about money skills in school.”

It’s important to teach your kids the importance of saving. Even in Israel, where no interest is paid, I think that teens should have a bank account. The bank account helps them learn great habits. Mainly that you can deposit what you earn, and you can only spend what you have. It’s not just an open wallet from mom and dad, rather they start learning lifelong lessons about money.

The downside in Israel is that it’s very hard for teens to invest. If you can open an account abroad