(BPT) - When it comes to financial literacy, parents know it's important to give kids the knowledge and skills they need to manage money. In fact, 81 percent say it's their responsibility as parents to teach children about money and saving, according to a 2012 survey by the website DoughMain. While you're teaching children about smart spending, saving and credit management, don't forget to discuss another important aspect of financial health: insurance.
"Parents should explain insurance in terms kids can relate to. They can explain how insurance is like a protective bubble they can put around the things that are important to them, like a beloved pet, their cellphone or their home," says Robert B. Pollock, president and CEO of Assurant Inc.
The leading provider of specialty insurance recently began sponsoring an "insurance store" at the Junior Achievement Discovery Center in Atlanta, where students learn important financial literacy and entrepreneurial skills. Assurant is a founding partner in the 50,000-square-foot center, which opened in August.
"A key cornerstone of Junior Achievement is to ensure that students can understand and apply basic personal financial concepts. Having a solid understanding of personal finance is a critical factor for success in today's world, and that's-important not just for our schools, but for parents too," says Jack Harris, president, Junior Achievement of Georgia.
While parents may be confident about the value of insurance in their own lives, it can be difficult to communicate such complex matters to children. In creating their Junior Achievement "store," the insurance pros at Assurant focused on ways to connect with kids about how insurance works and why it's important:
"Experiential learning is a cornerstone of successful financial education; we use it in our own training programs to help employees gain skills and take on broader responsibilities," Pollock says. "The JA Discovery Center exemplifies these principles and is a great example of how we can support financial education and help people protect what's important to them. Students will come away understanding the role insurance plays in everyday life - and have some fun in the process."