Finances have been on a lot of people’s minds since the start of the COVID-19 pandemic. While adults have more complex financial issues to worry about, teaching kids the basics of personal finance early and throughout their educational careers carries tangible benefits into their adult lives.
Here are five money lessons for kids of all ages, according to financial-planning experts.
1. Needs vs. wants: Differentiating between a need and a want can help your kids build smart spending habits.
2. How to make money: Encourage your kids to think about how to make money, from raking leaves and mowing lawns to child care and tutoring.
3. Pay yourself first: When they start earning money, make sure your kids know how to start putting some of that money aside. This will help them learn discipline and how to value themselves and their goals.
4. Spend less than you earn: Creating habits early can make it second nature for kids to not overspend when they are older.
5. Investing: Teach your children as young as possible about the benefits of compound investing – earning interest.