Talk Money with Your Kids Early!
We all want to make sure that our kids have a bright financial future. With some early education and preparation, there’s no reason that your kiddo can’t be the next millionaire!
The first step in raising a future millionaire? Start talking about money early! Here are a few teachable money moments that you can start taking advantage of TODAY:
At the Bank - Take the kids to the bank with you and show them how transactions work. Explain how money generates interest, and don’t forget to show them how an ATM works!
Payday - Discuss how your salary is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.
At the Grocery Store - It’s easy to give clear examples of “needs” and “wants” using different kinds of foods at a grocery store. For example: vegetables are a need; soft drinks are a want. Explain the benefits of comparison shopping, coupons and store brands.
Chores & Allowance - Assign chores and give them a monetary value. Discuss ways to budget and divide allowances. Encourage children to set a financial goal, such as saving for a bike, and help them figure out how to achieve it.
Bills - Explain the kinds of bills that we all need to pay: electricity, water, phone, etc. Be sure to cover late penalties, emphasizing the importance of paying bills on time.
Credit Cards - Explain that credit cards are a loan and need to be repaid. Go over the features of different types of cards, such as ATM, debit, and credit cards. This could also be a good introduction to debt, and the importance of making payments on time.