One of the goals as parents is to raise intelligent, financially independent kids. Here are some general guidelines on how to do that – at any age!
2-5 years old
- Practice basic math and money skills such as counting and coin identification.
- Play make believe! Pretend to be at a restaurant or store and make purchases that include an exchange of money.
- Teach your kids to avoid peer pressure. This includes needing a toy because their friend has it.
6-8 years old
- Start giving your kids a weekly allowance for chores around the house. The suggested amount is $1 per year age so if your child is six it would be $6.
- Open a savings account that they can put their allowance into.
- Teach budgeting by helping them save up for a toy they want.
9-12 years old
- Include your children in school shopping. Give them a budget they have to stick to and teach them how to compare prices.
- Teach your children the basics about the difference between debit and credit cards and the pitfalls of each.
13-15 years old
- Help them get their first jobs – whether that be babysitting, mowing lawns, shoveling snow, or at a local business.
16 – 18 years old
- Help them open a checking account and teach them to use a debit (or prepaid debit) card.
- Encourage charitable giving and volunteering to help their community.
- Teach them about credit reports and the importance of building their credit scores.
- Discuss student loans and include them in the college-budget information.
Your kids can become smart, savvy savers, and financially independent if you help guide them. The key is an early start to a healthy financial lifestyle.
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