Investing in Kids’ Money Smarts

What You Need To Know

As kids grow up, they learn sophisticated lessons about the Internet, cell phone usage, and substance abuse. Make sure that you also teach them about properly managing earnings from a job, developing a budget, saving for the future, and using credit wisely. To be certain that they have those skills when they need them, start early.

How You Can Help

Government agencies suggest ways to show kids the basics about finances. 

1. Jobs. Encourage your child to find small jobs like babysitting or doing chores for neighbors. Explain that the money can be spent on items that he or she wants (clothing, candy, movies) and deposited in a savings account for larger ticket items much later on like a computer.
2. Budget. Consider giving your child an allowance and ask him or her to keep track of purchases and their prices. After a month or so, review the results and ask your child what changes he or she might make.
3. Saving. Motivate your child to save a portion of wages or allowance by offering to match any account deposit he or she makes. Alternatively, offer to raise your child’s allowance by a couple of dollars a week if the money goes directly into a savings account.
4. Credit. Review your monthly bill with your child, explaining how the charges add up, what the payment date means, and what the risk of interest. Consider acting as a bank and “giving” your child credit the next time he or she wants you to buy an item.

For more information, please view the full article:

www.education.com/reference/article/teaching-your-teen-money/