One of the main responsibilities that you have as a parent is to prepare your children for the adult world. Money and finances are subjects that are often not taught in school. However, you can teach it in your own home. The following guide will help you teach your children about money.
Ages three to six
You can start talking to your child about money when they are three-years-old. They need to understand the concept of money early on. You need to teach children about work and money. You will also need to make sure that you have the right attitude about money. If you have a negative attitude about money, then this is something that your child will be able to pick up on.
Ages six to ten
You can start teaching children about saving and investing when they turn six-years-old. You should tell your children that it is important for them to save for things like major purchases and emergencies. You can start off helping your children save for small things like gadgets and toys.
You can also pay your child for doing chores around the house. This will teach your child the importance of working for money. This includes things such as cleaning the bathroom and the kitchen. You can also reward your children with money for good grades and good behavior.
Children who are at least nine-years-old can be introduced to the concept of bills. They need to understand that there is nothing free in life.
Ages 12 to 18
Children can be introduced to more difficult money concepts at the age of 12. You can start talking to your children about assets. You can also talk to them about saving up for college and retirement.
Even if your child is not old enough to get a job, they can still earn money doing things like babysitting or mowing lawns. Older teens should be encouraged to get a regular job. This will not only help your child earn extra money, but it can also teach your children how to be independent.
Credit is another topic that your child needs to be introduced to when they are in this age group. It takes several years to build credit. Your child can start building credit before the age of 18. A good way to help your child build credit is adding them as an authorized user. However, the credit card should have a small limit. You should also set rules for using the credit card.
Keep in mind that you will have to make sure that your own credit is good. If your own credit score is less than 700, then you probably won’t be able to help your child build credit.
