Kids and Money

Teaching children about money is just as important as teaching them to read. Giving kids a basic knowledge of finances will help them become money smart.

If children can count, they are probably ready to learn about money. In fact, counting pennies and nickels is a grownup activity kids enjoy and one that helps them understand that money isn't a toy.

Preschool-age children are usually able to learn the concept of saving for something they want, and will be proud to own a piggy bank. Parents can encourage them with a small allowance in return for simple chores.

By kindergarten, children should know the names of coins and paper money, and the difference between wants and needs. Involving them in the family grocery shopping will help them understand price and value.

Preteens are old enough to grasp the concept of comparison shopping, particularly when their money is involved. They should also learn the difference between paper and plastic, so they know charge cards aren't a magic source of free funds.

Parents should help teenagers understand matters such as checking accounts, taxes, mortgages, car loans, and insurance. After all, they'll be dealing with all of them in a few years.

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