April is Financial Literacy Month, and to recognize the month-long celebration, we’ll be sharing weekly tips to help our teachers and parents teach kids about money, money management and smart saving.
As higher education costs rise and jobs for graduates are harder to come by, it is more important than ever for our school to ensure that students are highly prepared not only for the academics they will face after leaving our classrooms, but for life’s realities as well.
Providing them with financial literacy is key! So read on for some great tips from “Money As You Grow” to help teachers and parents do just that:
For Kids Ages 3-5:
For young children, financial literacy needs to start with the basics. Teach your children that money is needed to purchase the things they want and they things they need, from food and drink to their favorite stuffed animal or toy.
Just as important is helping kids understand that money is earned by working, and that there are times when you must make the choice between what you want and what you need, waiting to purchase items that may not be a necessity.
For Kids Ages 6-10:
As kids get older, they will likely understand that money is required to buy things, and may even begin having a bit of money of their own, whether from allowance from their parents or money received as gifts.
As children begin spending their own money, it is important that they learn about saving money, as well as safe financial practices- like avoiding sharing financial information online. This is also a good time to teach kids the value of shopping around and comparing prices, to help them understand the value of their money differs from place to place.
For Kids Ages 11-13:
This is the age when teachers and parents should delve deeper into the idea of saving money. Teach kids to save at least 10 percent of the money they receive. If taught young, this lesson will stick with kids throughout their lives and promote healthy financial habits into adulthood.
Kids at this age can also begin to understand how saving can actually help their money to grow, so show your children how savings accounts gain interest, and open them up an account of their own.
For Kids Ages 14-18:
As children become teenagers, financial literacy becomes increasingly important. At this age, some young people may have access to their parents’ credit cards, or may even have a card of their own. Teaching teens about credit and debt, and how to use both responsibly is incredibly important.
Encourage teens to find a job, whether at a local grocery store or retail shop or as a babysitter or dog walker. Having more money to save (and even make mistakes with!) while still at home will help kids make smarter choices once they are on their own and earning more.
During high school, it is also important to help students understand the process of paying for college. While some students will be lucky enough to receive scholarships, financial aid or financial support from parents, many are expected to contribute to the cost of their college education. Students need to understand the impact school loans will have on their future, and need to prepare to pay those loans off after graduation.
For Kids Ages 18+:
At this age, young people will be in college and graduating from college, entering the workforce and facing more financial obligations than ever before. They may be buying cars, renting apartments and opening credit cards.
It is important that young people understand the risks of taking on debt. While some debt is a part of life, teens must understand that all debt must be paid off- and on time! Teach young people not to charge anything to a credit card that they cannot pay off in full each month, and help them learn how to choose a credit card wisely, comparing interest rates and fees.
With major financial choices in their near future- marriage, home-buying and more- it is important that kids at this age are taught about investments, and are encouraged to build an emergency savings fund.
Check out the “Money As You Grow” website for a full list of tips for kids of all ages!
How do you talk to your kids about finances? Share your tips!