By Chris Cravens, Coffee Financial
We all like to think our children or grandchildren are practically geniuses, but some things just don’t come intuitively. Everyone needs to learn the value of a dollar, how to make money work toward our goals and how to protect our financial legacy, even little kids. When your little ones aren’t so little anymore, you’ll have the comfort of knowing they understand and appreciate the power of financial planning.
But how do you know what’s appropriate at every age?
The Early Years: 5-9
Pre-kindergarten is a great time to start with the basics, including the idea that you must work to earn money, as well as the value of different coins and bills. By age 7, your child should be able to do some chores and earn enough allowance to buy small items. It’s important to discuss needs and wants and why you might have to wait a little longer (to save for something you want more).
Get To Work. Brainstorm ways to earn, like a lemonade stand or selling used toys.
Play Games. Money-based games (e.g., restaurant owner and customer).
Start Saving. Explain savings accounts and earning interest. Open up a savings account in your child’s name.
Tip: Start saving habits early by stashing a percentage of money received in each of four collection jars: for savings, growing, spending and giving. The point is to build patience in order to later enjoy the benefits of disciplined saving.