Charles Schwab: Seven ways to help kids learn about money Presented by Dena Petersen When working with families, I often hear parents say they wished they had understood money management sooner in life. Think back to how your journey started with personal finance. Did you learn about money management at home, school, or through trial and error? If we can provide our kids with a solid understanding of money management and teach them the importance of budgeting, investing, and saving, we will be giving them the tools to make better financial decisions when they enter the workforce. Ultimately, it’s up to each of us to make sure we give our kids the knowledge of personal finance that they
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need. Fortunately, there are a number of common-sense ways to pass along good financial habits.
3. Encourage a summer job. A Schwab survey on kids and money shows that when young people have jobs, they are likely to be better savers later in life. You can reinforce the emphasis on savings by making sure your child is saving a bit from every paycheck.
Here are seven tips that can help you teach your kids about money, starting with the steps to take with younger children and progressing through lessons relevant as they move toward adulthood. 1. Give your child an allowance. Earning an allowance can introduce kids to the value of money and making choices for themselves. Start when your child is little and consider tying at least part of the allowance to chores to help instill a work ethic.
2. Emphasize savings. Kids are likely to eventually want something that costs more than what they have in their piggy bank or savings account. That’s your chance to teach them how save and to reinforce the concept of delayed gratification.
4. Introduce them to investing. As kids get older and hopefully have some money accumulated, you may decide to open a custodial brokerage account and let them choose some stocks. It’s generally best to work with an advisor to do this,
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