#happylife: How to teach your kids about money at every age
When it comes to kids and money, it can be difficult for parents to figure out which conversations to have at which age.
Financial expert Dave Ramsey recommends the following guidelines for talking to your kids about money:
When it comes to kids in preschool or kindergarten : Use a clear jar to save money. Piggy banks are great, but the clear glass allows kids to actually see the money collection growing.
It’s also important to demonstrate that stuff costs money! Instead of just telling your kids something costs five dollars, have them use a few dollars from their own jar and show them what they can and can’t buy with it.
When they’re in elementary, or middle school : If you choose to give your kids allowance, make sure you don’t just pay them to pay them. Instead, give them small amounts for completing tasks like mowing the lawn or taking out the trash.
Also make sure you set a good example by avoiding impulse buys. This age is when kids are tempted to buy things that catch their eye. To help them form good habits, encourage them to wait at least a day before buying anything that costs more than15 dollars.
For teenagers: These years are a good time to give kids the responsibilty of a bank account. Actually take them to the bank and show them the process of setting up a savings account and how to use it. Then, show them how to make and stick to a budget.
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