Ten Tips for Teaching Kids about Money
- It’s never too early to start talking about money with your kids.
- Don’t make personal finance topics taboo from kids. Talking about money is a learning opportunity. Any discussion is better than silence.
- Consider giving your kids an allowance. Set expectations about spending, saving and giving to charity.
- Encourage your kids to make their own money. That way, they connect work to money. Money is a means to an end, not an end in itself.
- Teach your child to ask, “how can I earn that?”
- Make sure saving is a habit. Reinforce it. Don’t forget to do it yourself.
- Don’t say “we can’t afford it”, say “we don’t need that right now.”
- Keep talking about issues like debt and credit with teenagers, even if they act like they are not listening. Credit/debit cards can feel like plastic funny money.
- Kids remember and copy parents’ behavior. So model good stewardship of money no matter how much you have. Discuss the basics of budgeting.
- Think of a financial planner as a resource. Just ask. They can help you talk with your kids about money.
