As tough as the economy is these days, it’s never too early to start teaching our children about money. After all, they are the future of this world so if we don’t teach them, they’ll never learn!
Kid-Friendly Financial Tools for Every Age
Studies show children as young as three can understand what money is. If they can ask gimme at the store, you?ll eventually need to bring up concepts of cost, buy, and money. So introduce your kid to money with our smart and age-appropriate tools to help them grow up financially-savvy.
1) Baby Years (0-3 years) ? Just-for-Kids Savings Account
Junior might not be able to say money yet, but you can at least start saving it for him. Check out your bank or credit union for savings accounts especially for kids, like ING Direct’s Orange 4 Kids, which converts to an adult savings account when they turn 18, and Advancial’s Money Musketeers, which can be opened for just $5. Start funding it little-by-little now (like for college), and hand it over to Junior when to teach him to save on his own.
2) Toddler and Kid Years (3-10 years) ? Smart Allowance
It’s a hot debate in the parenting world, but giving allowance is the best , hands-on way for kids to learn money management. Make sure you talk through with Junior what an allowance is. Teach them key ideas of how to deal with their money with cool tools like The Money Savvy Pig for younger kids, a piggybank with four chambers ? Save, Spend, Donate, and Invest, and ThreeJars.com, an online money management tool for older kids with spending, saving, and sharing jars.
3) Tween Years (10 and older) ? Real Money Management
Now that they have money to use, give your tween tools to track their spending and saving. Set up an account for them with Mint or Bundle, free online money management tools to help visualize (in kid-friendly graphics) their savings account, cash spending, and maybe one day, a checking account and credit card. Encourage them to check weekly so they can see in a flash exactly where their money is going. It’s an awesome foundation for future money management skills.
Justine Rivero is the Credit Advisor and resident Credit Rockstar for Credit Karma, the pro-consumer credit advocate that helps more than 2.6 million consumers realize the everyday cost savings of having great credit health.
