Teaching Kids About Money Management
Helpful tips for talking to your children about money management.
Examples of how talk to your kids about money:
- Young children: saving money is like having an umbrella in the rain
- Early elementary school age: saving money is important in case I lose my train ticket and need to buy another
- Older child. for kids 9-10 years old teach them to save for unexpected events such as car break down
- A teenager. Need real like experience of living within their budget and saving money to handle unexpected expenses. Loaning them they have to pay back with in a certain time period is a good lesson too.
- College student. They need to understand that credit cards are not “free” money even if the offers they receive appear that way. Talk about interest rate on credit cards, payments…. A debit card is a better choice with a fixed amount of money to manage each month. Having a back up saving account can teach them they have some security in an uncertain world.
Be a role model. Parents, siblings and grandparents are important role models for teaching financial management to children. Lead by example.
Be honest. Building and maintaining trust with your child is essential. Admit mistakes and share how you learned from them.
Be interactive. Effective teaching is a two-way street. Talking and listening with real life examples is important.
Be patient. Some children may not immediately grasp the concepts you are teaching, but don’t give up on your teaching efforts.
Start with an allowance. For children, an allowance provides hands-on lessons in saving, spending, credit and budgeting.
Play http://apps.finra.org/moneytopia/ with your kids a game for elementary school children to teach financial literacy.
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