– Basic math skills, including percentages. – Problem-solving for making trade-off choices. – Needs versus wants. – Budgeting between money sources and uses. – Financial goal-setting in the near-term and long term. – The power of compounding. – Handling responsibilities. – Earning an allowance as income – Saving money for a rainy day, college, and retirement
Don’t wait until your kids are in their teens. Take out some of the mystique about money at an early age. Money doesn’t grow on trees, but it can grow in different ways, starting with saving money. Buy them a piggy bank so they can put physical coins to fill it up.
As kids age, they ask for and expect everything. Teaching “needs” and “wants” is tough when your 7-year-old says they need a smartphone and all their friends have had one for a long time. Spending money is a neglected topic for many kids.
Our kids are growing up in a digital world or know no other kind. They are on social media constantly, interacting with their friends, showcasing new games, shopping for trendy things, and seeing places others have gone.