Raising Moneywise Kids

Now more than ever it's important to teach kids solid financial lessons so they can succeed with their money goals. Our finance expert Rubina Ahmed-Haq shared lessons parents can follow to raise moneywise kids.

Three to Five Years Old

Three to Five Years Old

How do you teach these lessons?

1. Make sure children can distinguish between free activities and activities that cost money.

2. Point out people who are working and making money from their jobs. i.e. grocery store clerks, bus drivers, nurses, doctors, etc.

3. Countdown to a time when your child will buy or receive something new.

Six to 10 Years Old

Six to 10 Years Old

How do you teach these lessons?

1. Give kids a small allowance and teach them how to buy small items.

2. Take your kids grocery shopping, teach them about competitive price shopping, and let them make decisions about what the family should buy.

3. Let them handle money and/or give them a wallet. Make sure they count their change and understand the value of every cent.

11 to 13 Years Old

11 to 13 Years Old

How do you teach these lessons?

1. Encourage kids to get their first job. i.e. cutting grass, shoveling snow, babysitting, etc.

2. Give your kids the "right" to buy something they want by borrowing money from you. Have an appropriate punishment if they can't pay you back on time.

3. Show and tell your savings account (if you're proud of it) and tell your kids of when you started saving.

14 to 17 Years Old

14 to 17 Years Old

How do you teach these lessons?

1. Make your kids part of important financial decisions i.e. Do we buy a used car or take a vacation? Should we renovate our home or move to a new location?

2. Make tax time a fun event for the whole family. Seriously. Cook up some fun food, fill our forms together, and celebrate once you're done!

3. Teach the rule of 72. Take 72 and divide it by the interest rate you're receiving. This equals the time it will take to double that investment.

 

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