The ABCs of Finance For Kids: Tips and Tools for Raising a Smart Investor
Posted by: Sue Atkins
I’m always fascinated by all areas of raising happy, confident children so I read with interest this article from http://www.commonwealth.com/RepSiteContent/abcs_of_finance.htm about introducing sound financial habits at an early age, as you’ll give your child a head start on the path to becoming an informed investor.
I know my own children have learnt their money habits and mindset from my way of talking about money, handling money, spending and saving money as you are a role model for your own children too so……
Here are some creative ideas, as well as book and website suggestions, for raising financially savvy & confident kids and check out Sarah Cook’s great website http://raisingceokids.com/ where you can download a free chapter of her book called The Parents’ Guide to Raising CEO Kids too.
Lessons for every age
- Toddler: Toys that incorporate counting are a great way to introduce mathematical skills. Building blocks, number magnets, interactive musical instruments with songs about numbers, and stuffed animals that aid in counting are all good options for this age group.
- Age 5-plus: Board games can make learning about financial matters fun. Try Monopoly, The Game of Life, Billionaire Tycoon, Moneywise Kids, or Pay Day.
- Age 8 to preteen: At this stage, children often begin building their own personal income from allowances, gifts, or even small jobs, such as shoveling driveways. Since many kids in this age group are Internet experts, online games can be an effective teaching tool.
- Teenage years: Take your teenager to the local bank and help him or her set up personal savings and checking accounts. This will give your child a sense of responsibility and familiarize him or her with different banking transactions. Plus, banks often offer useful resources geared toward young customers.
- Off to college:The transition to college typically comes with a whirlwind of credit card offers. Be sure to talk to your child about the pros and cons of using credit. Prepaid credit cards can be a good way to help college students build credit responsibly.
- Young adulthood: As your child embarks on a career, remind him or her of the benefits of opening a retirement account early. At this point, you may wish to pass the baton to your financial advisor, who can address any money management questions your son or daughter encounters on the road to financial independence.
More resources: books and online games
- For kids ages 7–12, Neale S. Godfrey’s Ultimate Kids’ Money Book is full of engaging drawings that help children understand financial concepts through real-life scenarios.
For more information read here