Money Milestones for Kids

Like anything else, the sooner I teach my kids something the better. Money is not excluded.  I desire them to learn the concept early so I don’t have to worry about the negative impact in their adulthood. This doesn’t have to be a difficult task, we’re going to Incorporate into our day-to-day activities so the foundation is solid. Just take it day by day. Let’s talk about it. 

Early Money Concepts (ages 2-5)

You can’t get any more basic than this start with addition. Kids are learning account at this age so this should be fun. next you want to name the coins through match games, identification. Once your child(ren) learn this have your child them into different types. you can purchase those play toy cash registers and pretend they are grocery shopping so they can get the concept from here. Now we can bring subtraction into the mix for problem solving and counting money. Make sure your child knows how to differentiate between wants and needs while also understanding that they may have to wait for some things they desire. This should encourage them to distinguish Between two items that they really want. Kids can assist in clipping coupons, while you explain this practice can help you save money. 

First Money Lessons (ages 6-12)

Okay by this age you want to introduce working for money. Some people actually do a dollar per age per week for allowance. Teach them how to do price match price comparisons whenever they go to the grocery store or retail. Go to a bank and open up a savings account to teach them the concept of saving for a rainy day. This is a good age to talk to them about careers. Discuss your job and what you like about it and ask them what they want to do when they get older. Express that is very possible to love what you do for a living while making money. I let them pay for their toys of clothes whenever they have money for from birthdays or pay a bill. this way with them watching me they have a more clear understanding how money works. they’ll see certain things need to be purchased or paid in order to run a household.

Growing financial responsibility (ages 13-18)

I have a tendency to donate and declutter year-round. whatever is in the house that is not being used should be donated or sold. my kids play a role in this as well with their toys and clothes. If they decide to sell their clothes to Once Upon a Child, that’s fine. This is a perfect segue for them to understand that some financial institutions can pay you interest when it comes to saving money. Model and teach wise purchasing decisions for your kids. Teach them the difference between quality and quantity. this is a good time to encourage working a part-time job. I know when I used to work as a teenager, I enjoyed earning my money to make my own decisions about what I wanted to do – it was freedom. Of course, you want to make sure your child is not overwhelmed with balancing School outside activities while working a job. a paycheck is nice but a more balanced Life is essential for your child’s well-being.

Introduce budgeting and balancing a checkbook. Yes, we still have those! This is a great time for them to be introduced to the stock market as well as what it is and why people use it to invest. It’s important to teach the relevance of credit reporting and how maintaining a good credit score can it affect their financial future. I’m not sure if my kids want to go to college yet they’re too young to make that decision. I do plan on discussing college financing so we can have a plan in place like the 529 plan way before their senior year in high school. they will know how student loans work the interest that accrues and when they have to pay it back hopefully we don’t deal with that.
Real World Finances

Teaching kids about good money habits is essential for a successful future. again you want to introduce Concepts like budgeting investing earning and Responsibility to last a lifetime. Keep at practicing hands-on experience, setting up financial goals, spending decisions to better understand the value of money. I hope you found this article helpful let me know in the comments what you plan on doing to make sure your kids are equipped for a strong financial future.