Teaching Kids About Money

Teaching Kids About Money

If you’re looking to teach your child about finances, a good rule is to start small and start early! Children as young as three can grasp basic financial concepts.

Teaching kids about the value of money can begin with an allowance. Some parents give kids an allowance for completing assigned chores, while others feel that chores should be done without a money incentive. In the hybrid model, children complete their assigned chores but can earn extra money as well.

For pre-school and elementary school ages, teaching concepts of delayed gratification and saving can start with three clear jars, labeled “Save”, “Spend”, and “Give”. The “Save” jar is for long-term goals like a new toy. The “Spend” jar can be used for everyday purchases like candy. Finally, the “Give” jar can teach kids the power of donating to worthy causes. Our Rogue Rangers Badge Book also has fun activities kids can complete to learn about finances, and they’ll earn $5 into their Ownership Accounts when they’re finished.

Middle school is a great time to teach kids about “needs” versus “wants” and help them prioritize spending. Offer suggestions like shopping for the best price, or even buying an item used.

For teenagers, many financial institutions offer special accounts. Teens may also be able to get a low-limit credit card, which can help teach the importance of managing credit responsibly.

If your teen is planning for college, have realistic discussions about how much you can contribute and how much they’ll need. Scholarships and student loans are also options. As kids begin to understand the true cost of college, it can sharpen their planning and money management skills.

Yes, teaching children about money now, is truly an investment that’ll pay dividends later.