Teaching Money Skills Early: financial literacy for your children

We believe in empowering the next generation with essential money management skills from an early age. Here are five key points to consider when teaching financial literacy to kids:

Start Young

• Introduce basic concepts like saving, spending, and giving from as early as preschool.

• Use age-appropriate tools like piggy banks and allowance systems to instill the value of money.

• Encourage discussions about wants versus needs to cultivate responsible decision-making.

Make it Practical

• Involve children in household budgeting activities to understand the importance of prioritizing expenses.

• Create savings goals together for items they desire, teaching them the value of patience and delayed gratification.

• Provide opportunities for them to earn money through chores or entrepreneurial ventures, fostering a strong work ethic.

Teach the Power of Compounding

• Demonstrate the benefits of saving and investing early through simple examples like compound interest.

• Open a savings account for them and show how their money can grow over time with regular contributions.

• Discuss the importance of long-term financial goals like college savings or retirement planning.

Lead by Example

• Be transparent about your own financial decisions and involve them in family discussions about money.

• Show them how to create and stick to a budget, emphasizing the importance of living within means.

• Model responsible borrowing habits and the consequences of debt.

Encourage Lifelong Learning

• Provide resources like books, games, and online educational platforms to expand their financial knowledge.

• Discuss real-world financial situations like paying bills, taxes, and investing in stocks or bonds.

• Support their curiosity by answering questions and encouraging them to seek out further information.

Teaching financial literacy to kids is not just about dollars and cents; it's about instilling values, habits, and skills that will set them up for a lifetime of financial success and independence. Start early, make it practical, and lead by example to empower the next generation to make informed financial decisions.

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‍_{Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. Information presented is for educational purposes only and should not be considered as specific investment advice. It does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.}