Teaching your children about money and
finances is easiest when you start early. Here's a quick review of what you
should teach your children at each age if you want them to become financially
competent adults.
Preschool – Skills to Teach
* Identify coins and bills; learn what each is
worth.
* Understand that you can't buy everything;
choices are necessary.
* Save money in a piggy bank.
Grade School – Skills to Teach
* Read price tags; learn comparison shopping.
* Do money arithmetic; make change.
* Manage an allowance; use it to pay for some
of child's own purchases.
* Open a savings account and learn about
interest.
* Participate in family financial discussions
about major purchases, vacation choices, etc.
Teens – Skills to Teach
* Work to earn money.
* Budget for larger purchases.
* Learn to use a checking account.
* Learn about investing – stocks, mutual
funds, CDs, IRAs, etc.
* Share in financial planning (and saving) for
college.
College/Young Adult – Skills to Teach
* Learn about borrowing money (interest,
default, etc.).
* Use credit card judiciously.
* Participate in family estate planning
discussions.
Knowing about money – how to earn it, use it,
invest it, and share it – is a critical life skill. It's never too early to
start teaching your children about financial matters.
SBDP Staff | 09/13/2013
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