Teaching Children How To Handle Money

Guide to kids and money.

Preschoolers (4 - 6 years old)

• Separate coins into piles and discuss their value.
• Let them pay for a few items when you go shopping.
• Give them a piggy bank and encourage them to put gifts of money into it.

Early elementary (7 - 9 years)

• Open a savings account for children.
• Compare prices while shopping.
• Teach the difference between needs and wants.

Middle elementary (10 - 12 years)

• Give an allowance for their daily use and apportion savings and spending.
• Plan to share the cost of an item they cannot afford from their savings.

Early teens (13 - 15 years)

• Help them understand the use of cash and the dangers of credit.
• Encourage planned savings for a particular item and regular savings for emergencies.

Middle/late teens (16 - 18 years)

• Involve them in getting information for a long-term financing arrangement.
• Start educating about investing and the various types of financial products.