Guide Your Children To Financial Maturity

Posted on Thursday, September 26, 2013

Teaching your children about money and finances is easiest when you start early. Here's a quick review of what you should teach your children at each age if you want them to become financially competent adults.

Preschool – Skills to Teach
* Identify coins and bills; learn what each is worth.
* Understand that you can't buy everything; choices are necessary.
* Save money in a piggy bank.

Grade School – Skills to Teach
* Read price tags; learn comparison shopping.
* Do money arithmetic; make change.
* Manage an allowance; use it to pay for some of child's own purchases.
* Open a savings account and learn about interest.
* Participate in family financial discussions about major purchases, vacation choices, etc.

Teens – Skills to Teach
* Work to earn money.
* Budget for larger purchases.
* Learn to use a checking account.
* Learn about investing – stocks, mutual funds, CDs, IRAs, etc.
* Share in financial planning (and saving) for college.

College/Young Adult – Skills to Teach
* Learn about borrowing money (interest, default, etc.).
* Use credit card judiciously.
* Participate in family estate planning discussions.

Knowing about money – how to earn it, use it, invest it, and share it – is a critical life skill. It's never too early to start teaching your children about financial matters.

Posted in Tax And Accounting Topics For Business

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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