Did you know ...Only about one-third of the states require any kind of personal finance education in school? Parents and guardians must step in to fill the gap.
Here are Five Simple Ways to Get Started
- Start with a piggy bank and add money regularly together with the child. As your child gets older, replace the piggy bank with three clear jars for: saving; spending; and sharing. This is a fun way to teach budgeting concepts.
- Your child may believe she needs a candy bar because she doesn't yet understand the difference between needs and wants. This conversation may have to be repeated several times, but it is one well worth having, as many times as necessary.
- Take your child grocery shopping with you and let him help make choices based on product costs and family needs. Pay and count out the change with him.
- Using a credit card for purchases may be convenient but it can be confusing for a child trying to understand the value of money. Lead by example whenever you can.
- Have open conversations about money. This will ensure your child learns money values from you and not from friends.
Research suggests that children can begin learning basic savings and spending concepts as early as age 3.