Back- to- school time means plenty of lessons to learn in the classroom. But parents usually have to be the teachers when it comes to a subject their kids will need to understand throughout their adult lives – personal finance.
Kathy Longo provides a list of ideas that can help your kids learn about finance:
Learning wants versus needs. The foundation of a child’s finance education begins with learning the difference between wants and needs.
Using a three-slotted piggy bank. Three slots to separate dollars for saving, sharing and spending can help them understand the connection between money and the new toy they bought.
Giving back. Teach your kids the importance of giving, such as by donating toys they no longer use.
Making a budget. By middle school, children should have an idea of what it costs to keep the house running each month.
Explaining college. Educate students about the additional financial opportunities they’ll have if they earn a college degree.
Getting a job. “This is a good time for a debit card and to learn the importance of a good credit history,” Longo says.