As parents, we know that financial literacy for kids is critical. But how do we get started? Which topics should we teach, and when?
Financial literacy means having the knowledge and skills to manage your money successfully and confidently.
What Is Financial Literacy?
It means, first of all, smashing the taboo of talking about money. Instead, show your kids how you save, spend, invest, track, budget, and so on.
One of the most basic money skills kids can learn is how to save money. For the youngest of kids, it works best to do this in a tangible, tactile way.
Teach Your Kids How To Save
Kids can start learning the basics of investing from a surprisingly young age. Here are some age-based ideas for how to instill investing knowledge:
- Basic Concepts (4–8 years old) - Intermediate Concepts (9–13 years old) - Advanced Concepts (14 years old and up)
You can get them started with an investment account much earlier—perhaps as soon as they have some extra birthday or holiday money.