Teaching kids to save is important. But what should kids learn at each age? Here’s a guide to help you talk to your kids about money, introducing the right topics at the right age.
3-5 Years
You need money to buy things.
You earn money by working.
You may have to wait before you can buy something you want.
There is a difference between things you want and things you need.
6-10 Years
You need to make choices about how to spend your money.
It’s good to shop around and compare prices before you buy.
It can be costly and dangerous to share information online.
Putting your money in a savings account will protect it and pay you interest.
11-13 Years
You should save at least a dime for every dollar you receive.
Entering personal information, like a bank or credit card number, online is risky because someone could steal it.
The sooner you save, the faster your money can grow from compound interest. Using a credit card is like taking out a loan.
If you don’t pay your bill in full every month, you’ll be charged interest and owe more than you originally spent.
14-18 Years
When comparing colleges, be sure to consider how much each school will cost you.
You should avoid using credit cards to buy things you can’t afford to pay for with cash.
Your first paycheck may seem smaller than expected since money is taken out for taxes.
A great place to save and invest money you earn is in a Roth IRA.
18+ Years
When comparing colleges, be sure to consider how much each school will cost you.
You should avoid using credit cards to buy things you can’t afford to pay for with cash.
Your first paycheck may seem smaller than expected since money is taken out for taxes.
A great place to save and invest money you earn is in a Roth IRA.
Additional Resources
The information above is from www.moneyasyougrow.com and includes activities and ideas to help develop good financial savvy in kids. Visit northshorebank.com or consumerfinance.gov/consumer-tools/money-as-you-grow/ to learn more