As soon as children start to collect a few coins and understand the value of money, open a savings account for them and explain how interest works.
Suggest children save at least part of the cash they receive – for birthdays, holidays or jobs – for something they really want, which can make it easier for kids to set aside the money.
Teach them about the importance of giving back. Explain how donations work, and find one or two organizations that tie into their specific interests.
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Tips for parents on how to begin teaching their kids about money:
- Include your kids in every-day family financial conversations, such as paying bills, saving for a vacation and unexpected emergencies.
- Once children start to collect a few coins, teach them the different monetary values and practice math skills by adding coins together to get to one dollar.
- Suggest children save at least part of the cash they receive – for birthdays, holidays or jobs – for something they really want.
- Open a savings account for them. When they get their first job, help them open a checking account and show them how to use it.
- Take your kids to the grocery store with you. It’s a great way to show them to how to compare costs, make tough choices based on a budget and begin to understand the difference between needs and wants.
- Teach them the importance of giving back. Explain how donations work and find an organization that ties into their specific interests.