Start Financial Education Early
It’s never too early or too late to talk to children about finances. As you know, your personal finances are not just creating a budget or reading your credit report. Personal finance is:
- Figuring out your needs versus wants,
- Learning to work with limited resources; and,
- Working towards future goals like saving for a car, buying a home, or saving for your retirement.
You can lay the groundwork for children to make good financial decisions by talking to them, playing games with them, and giving them space to make choices and mistakes. Here are a couple of things you can do with your child to practice some of these important financial ideas.
A Money Surprise! You can pretend with your child that you’ve just received a surprise money gift of $5-$100. Ask your child what they would do with that money. Are they going to save some of the money? Why?
Set Savings Goals! Have your child set a savings goal. They could save for a new pair of shoes, game or outing. You can even involve your child in saving for homeownership! Remember, saving is not just putting money in the bank, it’s cutting back on expenses like eating out or extras at the grocery store.
Don’t forget to talk to children about credit and credit scores. Credit can affect their ability to rent or buy a home, purchase a car, or even get a job. Need a credit refresher? Check out this link about credit reports and credit scores.
Want more resources? Check out these websites:
Build your kids’ money skills while they are home from school from the CFPB
Planet Zee Game from Ally’s Wallet Wise program