How to teach your kindergartner to grow up and be rich!
August 31, 2016
Did you know that only 17 states in the United States require that students at public high schools take a personal finance class before they graduate? That is outrageous! That means that less than half of all graduates may not know something as simple as how to balance a checkbook!
So what does that mean for us as parents? It is our responsibility to prepare our kids for the real world and their future and the earlier we start teaching them about money – the better. Every child learns at a different pace so the earlier you can begin laying the groundwork, the better the outcome. We recommend starting around age 3. For example, at age 3 they should learn to identify coins by their correct name and how to keep money in a safe place.
Below are some simple money lessons you can introduce to your kids as early as kindergarten. The more fun you can make it, the more they will want to learn. Of course, we can’t guarantee that these lessons will make them millionaires, but if you start early, they will be ahead of the curve.
The Concept of Earning
Introduce the concept of an allowance and give them responsibilities that will help them to earn their allowance.
Share, Save and Spend
Once they have started earning money, explain what it means to spend it, share it or save it.
How Debit and Credit Cards Work
When using one of these cards, let them help you enter your PIN number and explain how the card works. Explain the different between your cards, how the debit will take money out right away while the credit card will send you a bill.
How Coupons Work
Have your kids cut coupons out with you and then use them together at the store.
The Basics of Investing
Open an investment account for your kids and use the money that they have earned to buy stocks, mutual funds, etc for them. They can then watch that account and see how it is doing.
Our office has come up with an age appropriate guide to help you teach your child about money. To receive a copy, please give us a call at 763-231-910. We also highly encourage you to bring along your kids to your next review or consultation with us.