Preschool – Skills to Teach * Identify coins and bills; learn what each is worth. * Understand that you can’t buy everything; choices are necessary. * Save money in a piggy bank.
Grade School – Skills to Teach * Read price tags; learn comparison shopping. * Do money arithmetic; make change. * Manage an allowance; use it to pay for some of child’s own purchases. * Open a savings account and learn about interest. * Participate in family financial discussions about major purchases, vacation choices, etc.
Teens – Skills to Teach * 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.
College/Young Adult – Skills to Teach * Learn about borrowing money (interest, default, etc.). * Use credit card 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.David Bradsher, CPA