As parents, we always want what’s best for our children. Making sure that we give them the necessary tools to thrive on their own is a huge responsibility. As kids age, they become more and more independent so it’s crucial that they have reliable financial knowledge to take with them.
According to PBS, by age seven money habits are already set. During this stage, kids start grasping the concept of earning and saving money. A great way for young kids to begin earning money is through an allowance. This can help them learn about responsibility and work ethic. Providing children with structure can help them slowly start to take on more responsibilities. As kids start regularly completing chores and earning an allowance, it’s important that they learn how to save what they earn. Something as simple as a piggy bank can encourage them to be wise with their money.
This stage of life can be tough on any kid. Teaching them how to budget will allow them to see the bigger picture. Middle schoolers often face a lot of pressure to fit in with their peers. It’s possible that they may feel the need to buy certain things in order to achieve that sense of belonging. Work together with your child to put together a budgeting plan. When you work with your child to create a budget, you’re giving them control over their own finances which can promote a sense of confidence and independence.
As kids enter high school, they should have a grasp on how the basics of finance work. During their high school years they can start thinking about getting their first jobs and their own debit card. Start by selecting the best bank account for your high schooler. By having a debit card, your high schooler can learn how to deposit and withdraw their own money. As a parent, you’ll want to walk them through staying organized and keeping track of financial transactions.
college and beyond
College provides students with a sense of newfound freedom, bringing with it a lot of experimenting with finances. Once your child turns 18, discuss the basics of credit cards with them. During this time, college students may start planning for their future beyond college. Areas such as retirement, becoming a homeowner, and investing become a financial priority. Encourage them to start asking questions like, “how much house can I afford? or “how will I invest my money?” to help them prepare for more long-term financial goals. Your child may be an adult now, but as a parent, it’s important that you continue to guide your child through this phase of life.
It’s never too early to start teaching your children about smart money habits. As children go through different stages of their life, they’ll need various financial tools to depend on. Promoting a healthy relationship with finances can set them up for future success.