Teaching your child about money and finances is easiest when you start early. Here’s a quick review of what you should teach your children at each age if you want them to become financially competent adults:
- Identify coins and bills, and learn what each is worth.
- Understand that you can’t buy everything (choices are necessary).
- Save money in a piggy bank.
- Read price tags, and learn comparison-shopping.
- Do money arithmetic (make change).
- Manage an allowance, and use it to pay for some purchases.
- Open a savings account and learn about interest.
- Participate in family financial discussions about major purchases, vacation choices, etc.
- Work to earn money.
- Budget for larger purchases.
- Learn to use a checking account.
- Learn about investing — stocks, mutual funds, CDs, IRAs, etc.
- Share in financial planning (and saving) for college.
- Learn about borrowing money (interest, default, etc.).
- Use credit cards judiciously.
- Participate in family estate planning discussions.
Knowing about money – how to earn it, use it, invest it and share it — is a critical life skill. It’s never too early to start teaching your children about financial matters.
Ready to set your young one up for success with a solid education savings plan? Schedule a meeting today to start a conversation on what option is right for you www.bas-pc.com/schedule.