Raising Financially-Aware Kids in the Internet Age
Today’s kids have more information at their fingertips than past generations could ever have dreamed—but not all this information is always accurate. And when it comes to financial literacy, the ability to weed out misinformation is crucial when it comes to developing healthy financial habits. What can parents do to encourage their kids to become financially aware adults? Young Children: Learning What Money Is and What It Can Do It’s never too early for children to learn the basic principles behind money: as a means to exchange something you have for something you want. By bartering with your toddler—exchanging a toy for a treat, or setting up a play store at home where they can “purchase” items they want—you’ll be able to get them started on the concept of exchanging money. Once your children are a bit older, you can build on this initial knowledge by involving them in household purchases. For example, you can help them boost their math and financial skills by adding up the price of items you’re purchasing at the grocery store or choosing between products to ensure that the total stays below a certain amount. And with access to the internet, it’s easier than ever to see how much a specific item costs. Adolescents and Early Teens: Saving and Living Within Your Means Tweens and teenagers are better able to conceptualize cost and value, which makes this the perfect time to create habits that will help them live within their means. If your child receives an allowance, this can provide an opportunity to begin shifting the cost of certain treats and extras to them. For example, you may be able to show your child that one week’s allowance is enough to go to