Your bubbie may be just three years old, but it is never too early to start educating him about money. While most kids are aware of the concept of money at a young age, they don’t quite know where it comes from, how hard it is to earn it, and why it’s important to save some for a rainy day.
Kids may be taught the difference between a quarter and a nickel at school, but they aren’t taught how to handle money responsibly. Many teenagers graduate high school being able to recite the entire periodic table, but ask them to balance a checkbook and you’ve got them stumped. It’s not because it’s hard or they can’t figure it out, but it’s because they never developed the proper habit to do so. It is therefore the responsibility of parents to hone in on this habit of money management (budgeting, planning, and saving)...at a young age.
Lucky for you, you don’t have to do this alone. Money As You Grow was mandated by the President’s Advisory Council on Financial Capability to come up with lessons to help kids form a habit of financial responsibility and acumen. MoneyAsYouGrow offers 20 essential, age appropriate financial lessons - with corresponding activities - that kids need to know as they grow. These lessons and activities are based on more than a year of research, from dozens of standards, curricula, and academic studies.
Some noteworthy activities include:
- Talking out loud when shopping with your child so they can see the thought process behind making a decision to buy, borrow, wait or forego an item
- Going online to federalreserve.org to show your child how long it takes to pay off $1,000 in debt if they make minimum monthly payments (this is an eye opener even for some adults)
Yes, there are things on the site you might not agree with 100%, but it’s a great place to start them on their journey to financial dexterity, which will afford them financial freedom later on in life!