WATCH: How to raise your kids who smart about money

Financial literacy among both adults and children is abysmal.

As we have reported over the years, most Americans are living paycheck to paycheck, and the personal savings rate is just three percent. This isn’t good enough.

Of course, financially illiterate people is a result of the government education system, a massive failure. Since you can’t rely on government teachers to teach students about money, it is up to you do it (and as it should be!).

PragerU is out with a video that discusses “how to raise kids who are smart about money.” It provides three simple suggestions: put your kids to work, allow your kids to make mistakes and teach making saving a habit.

Simple but effective.