April is Financial Literacy Month. What does that mean? It means it’s time to focus on your knowledge of money. In this post, I would like to share tips for talking to kids about money. What age do you start teaching them, why earning money is better than a handout, and saving money.
At what age does your child start to learn about money? The answer might surprise you.
Children as young as age two can start learning good money habits. They are observing everything including money and how their parents use it. Teach them the names of the different coins. Play store with them so they can start to learn how money is exchanged for goods.
At ages 4-5 years old, children can start to help you with tasks like clipping coupons, teaching them the value of saving money while shopping. Many preschoolers love to play restaurant where they can learn about exchanging a meal for money.
Between the ages of 5 and 8 years old, children should begin receiving an allowance for chores completed. Continue to teach them the value of saving money by opening a bank account with them where they can deposit their money and watch the balance grow.
As they get older, children can be brought with you to the grocery store where they can learn about comparison shopping and saving money with coupons.
Children are innately conservative about money. They want to save it for something later. They like having money in their hands. Foster that by teaching and encouraging them to save money. This becomes most important when they become teenagers.
If you’ve instilled money values in your children when they are young, they are less likely to experience financial hardship as college students or young adults. They will already understand the value of a penny saved is a penny earned. Start them young and watch their financial literacy expand and their savings accounts grow as they become adults.
Interested in learning more about talking to kids about money? Contact us today and get started with a Eureka Session.