Teaching Kids the Value of Money
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United Way of Greater Milwaukee & Waukesha County

Teaching Kids the Value of Money

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Written by Gina M. Sanchez Juarez

One of the most critical things we can teach our children is how to handle their money. In an age where everything is digital, we all know it’s much easier to swipe a credit card than pull dollars out of your wallet to pay for an impromptu purchase!

While most families are helping their child focus on how to recite the alphabet and identify colors, it is also important to remember having financial literacy is just as important. Here are some tips on how to start the conversation broken down by age range:

  • Toddler (2-3 years): Repetition is instrumental at this age. Start talking out loud about what is on sale at the store when you are shop with your child. You don’t need to speak on every item you purchase, but it is great to discuss a few items at each shopping adventure. “Oh look, this cereal is on sale, and I have a coupon, so I will buy 2 of them.” Let them make choices between which cereal and type of fruit they would like. Making purchasing decisions also teaches them the value of being a good consumer. Play supermarket at home, play money and items you already have in the house. Label the things you have at home with a price sticker and have them pretend to shop. 
  • Preschool & grade school (4-13 years): At this age kids can help make the grocery list, cut coupons and pick out items while you are shopping.  When shopping for clothing, give them a limit of what they can spend and let them make decisions on what they need without going over their limit. If your child receives a birthday check from Grandma or earns an allowance, give them the opportunity to save it in their own piggy bank. Once the bank is full, set up a time to go to the bank together to open a savings account. Encourage them to ask questions and learn about the process. This helps your child build a relationship with the bank/credit union directly, and creates a positive connection to saving money.
  • High School (14-18 years): At this age, most young adults can start working to earn money. If your child doesn’t already have a checking account, now is the time to open one. This is a great time to set expectations about how much money from each paycheck should be put in a savings account. Set up time to go with them to a personal banker. It’s essential they learn what the financial institution expects and what fees could be incurred if they don’t manage their spending wisely. If your child plans to go to college or work full time after graduation it’s also a good time to talk about why investing in retirement is so important.  A family meeting with a trusted financial advisor is a great way to introduce that information.

Discussing money with your child at any age will benefit their money and credit management as they become a working adult. Age appropriate conversations, inclusive decision making, and hands-on activities will keep money and credit a positive in your child’s life. Find more information and interactive activities.

About the Blogger
Gina M. Sanchez Juarez is the Financial Stability Coordinator at La Casa de Esperanza, in Waukesha, Wisconsin. The Financial Stability Initiative is a partnership between La Casa de Esperanza and the United Way of Greater Milwaukee & Waukesha County. Gina has all six certifications under the NeighborWorks Center for Homeownership Education and Counseling and operates under the National Industry Standards for Homeownership Education. She is a financial coach and educator working with individuals and families on obtaining tools for financial capability by meeting basic needs, building savings and gaining assets. She enjoys sharing her knowledge of personal finances to positively impact the lives of others.