How do you teach kids about money management? Our guide to money, from pre-school to high school, will ensure your kids are well-advised every step of their childhood. Understanding money, saving, and everything in between will hopefully ensure that your kids will become well-adjusted adults who truly appreciate that to earn money, you have to work hard for it. It’s fun, educational, and kids can start as young as 3 years old…go for it.
Start them young! Little eyes are watching you all the time. Your child will notice if you do a lot of online shopping and bags keep getting delivered or parents argue about money problems. So make sure to set a good example! Explain what money is, and show them how it works, preferably with cash.
Many parents will feel uncomfortable discussing money and finances with their kids, but it's an essential life skill, and the younger you start, the easier it will be along the way. A study by the University of Cambridge found that money habits in children are formed by the time they're 7 years old.
Here are some money management tips for kids ages 3 - 5:
When your children reach the age of around 5 - 6, they will start to comprehend the value of goods and set prices. Now’s the time to explain how much different toys cost and how people earn money.
Between the ages 6 - 11, there is much to teach in financial literacy, from allowance to charity to saving. Explain what jobs you have and how that allows you to take care of the family and buy what everyone needs. Connect yourself to the toys on the shelf and family outings. We have listed our top tips divided by age below:
At this stage in their life, they are ready to have their first taste of financial independence, whether getting their first job, opening up a bank account, or learning about building credit. Check out our top financial literacy tips for teens aged 12 - 18:
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