You might have to be the first personal finance instructor in your child’s life because no one else will be able to teach your children about money early enough. If you’re not sure which specific lessons are appropriate at different ages, read on.
Ages Three to Five
Age three is a good place to start teaching your kids about money as, if they’re any younger, they’re simply too underdeveloped to understand the concepts you’re trying to get across.
At this age, money is simply something visual to them. So, one of the best tools you can use to begin your teaching is a clear jar your kids can drop loose change into. Your child will solely focus not on the physical attributes of the money in the jar, not its value.
While you may not necessarily be teaching your kids much at this age, you’ll be successfully introducing them to the overall presence of money in their lives.
Six to 13
At the younger end of this age bracket, money might be more of a visual thing, but as they get older, they can understand the actual value of money.
You can now start introducing the concept of doing jobs around the house and getting paid, which, when it comes to the world of work, is a vital concept your kids need to learn. Then again, it’s still important to ensure your children still do basic chores such as making their bed and picking up toys without expecting a monetary reward.
Kids can also understand saving and giving at this age so, if your child desperately wants something, encourage him or her to save their own money as opposed to you buying it.
14 and Up
As a teenager, kids are old enough to process the concepts of bills and debt so, if you need to consolidate your cards, don’t hide it from them. Be honest and open with them in discussing financial figures (as long as it’s appropriate), and they’ll automatically learn from observing how you deal with important financial situations.
Teach Your Children About Money
If you don’t start teaching your kids about money from a young age, you’ll give your kids the best possible start for their own finances as they grow up.
Readers, have you started to talk to your kids about money yet?