Instilling in children good attitudes about working, earning, saving, and investing is an important part of being parents. Teaching your kids about money is something you should consider doing from a very early age, especially since it is rarely taught in schools.
Many of us have to overcome a natural inclination to avoid a seemingly adult topic like money, but it’s important to help our kids develop the right habits early. If you can effectively teach them about money and demonstrate responsible financial behaviors yourself, they will be a better shot at leading fulfilling lives.
Here are some tips to help you teach younger kids about money.
When children reach six, they are ready to learn about money because they know how to add and subtract, and they’re old enough to have small chores. However, they likely know the value of dimes, nickels, and quarters from school, check-in to make sure. Teach them how to add coins together.
Before you begin teaching your young children how to spend money, teach them how to earn it. Plenty of parents don’t like the automatic, money-for-nothing nature of an allowance. Rather than doling one out, think about ways the kids can help around the house—doing the dishes, taking out the trash, running the laundry.
Then pay them accordingly as a teaching tool. Help them save—open a savings account, or buy a piggy bank. Encourage them to set aside a portion of their earnings towards a larger purchase.
Then establish a goal—something they would like to purchase. Consider matching their savings to help with the purchase. Not only is your child learning critical lessons about responsibility, he or she also is learning about the value of saving money.
DISCLOSURE: The information contained herein has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy. Cassady Schiller Wealth Management is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only, are subject to change from time to time and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.