Children and Money
Kids and money. The combination for a great opportunity? You bet! It’s important for kids to learn simple money management and personal finance skills. Yet, not enough of them understand the basic principles of earning, spending, saving, borrowing and sharing.
What can you do to enhance their financial well-being now and for the rest of their lives?
Start by being aware of how you deal with money:
- Do you create an open environment in which your family can discuss money issues?
- How do your kids get money − through allowances or other methods?
- What are your kids learning about money through watching you?
The earlier you begin talking about personal finance skills, the better, and it’s never too late to start. As your kids learn about money, there'll be plenty of opportunities to develop their skills and understanding. For example, if they have to earn their allowance by doing chores, your kids will get to see the relationship between money, time, skills and energy.
Try some of these activities to help teach your kids about money.
| Ages | Suggestions |
|---|---|
| Preschool, Ages 2-5 | Give your kids a piggy bank that can be opened easily; let them handle and count the money; show them the difference in coins. |
|
Elementary, Ages 6-8 |
Take them shopping! Let your kids read the price tags and find similar items with varying costs; explain what you do at checkout. |
|
Middle School, Ages 9-12 |
Take a field trip to the bank; involve the whole family in the budgeting process; let your kids research your next family outing by comparing movie ticket prices, menu options, calculating gas spent on travel, etc. |
|
High School, Ages 13-18 |
Use a chart to help your kids set specific goals; set dates and develop a plan to reach those goals; set up a family loan program that includes a pre-set credit limit, a fixed interest rate and a repayment schedule. |
Teach your kids about money by setting a good example. Discuss your family’s money management system and encourage your kids to get involved in the decision-making process. The good money management habits they develop now, can last a lifetime.
