Educating Your Children
It's never too early to start teaching your children the basics of money management. Exposure to financial education at an early age can lay the foundation for a more successful financial future. Consider these topics to help your kids become well versed in money management.
Ages 4–6
Young children can learn the basics of money, such as differentiating coins and understanding how to put some funds aside. Here are four basic money management concepts for young children:
- Knowing the difference in appearance and value between coins and bills
- Putting money aside to save for later
- Understanding the value of earning money by completing tasks
- Comprehending the difference between wants and needs
Ages 7–12
Once children have a basic understanding of the value of money, introduce them to these more complex financial topics:
- Managing, saving and spending an allowance
- Tracking purchases
- Shopping to compare prices
- Making — and sticking to — a budget
- Avoiding impulse buying
Ages 13–17
Help your teen put concepts learned into real-life practice and build solid money management skills before entering adulthood. Teaching teens about these financial concepts can help improve their money management skills:
- Managing money earned through work (like a summer or a part-time job)
- Making financial goals (short- and long-term)
- Understanding and learning about the wise use of credit
- Protecting against identity theft
- Managing debt
- Saving toward a goal (like a bike, car or college fund)
Ages 18+
Developing money management skills requires ongoing education throughout adulthood. Some real-life topics will unfold now. Financial education topics include"
- Buying a Car
- Emergency Savings
- Budgeting
- Saving for a Goal
- Building an Education Fund