Tips to teach children of all ages about saving money
Children learn financial habits from observation, instruction and practice
InvestigateTV - Children start to form money habits as early as age 7, a University of Cambridge study found.
That’s why Michael Joyce, a financial advisor for Agili, is encouraging parents to start teaching their children the important of saving early. It can be as simple as getting them a piggy bank and filling it with loose change or money from chores.
When they become a teenager, Joyce suggested helping them open investment account. He said he helped his son put some money from his summer job into a Roth IRA.
“Part of this was teaching him about compound interest and how if you save this money today, how much it could be worth in the future,” he said.
The Consumer Financial Protection Bureau (CFPB) has free financial lesson plans for parents and teachers, with topics geared for children as young as three through young adult.
Joyce said regardless the age, the goal is to teach your children to think about their future.
“And even for short-term things, if they want to buy a new Xbox or a bike, you know, teach them the benefit of saving some money, putting a little bit away to contribute towards those purchases,” he said.
Other resources to help teach your children about finances:
- CFPB: Money as You Grow: Help for parents and caregivers
- MyMoney.gov: Resources for youth
- Federal Deposit Insurance Corporation (FDIC): Money Smart
- US Mint: US Mint Coin Classroom
- National Financial Educators Council: National Financial Literacy Test
- CFPB: Financial education for adults
Copyright 2023 Gray Media Group, Inc. All rights reserved.