Teaching children financial lessons at all ages

KUSA - As a parent, you can teach your child important financial lessons, including the right way to save for college. We continued our "Keeping Up With The Joneses" series on 9NEWS 7 a.m.

As part of this effort, we've tapped financial expert advice for what money lessons you should be sharing with your kids at various ages.

Ages 3-5 The lesson, according to the experts, should be that you may have to wait to buy something you want. Financial planners say lessons at this age set the tone for later one. Kids can learn quickly that going into a store doesn't always mean you'll buy something.

Ages 6-10 At this age, money managers tell us that it's important to explain to your child that money is finite and why it's important to make wise choices. At this age, you should keep up with activities like the saving, spending and sharing jars, and goal setting -- you should also start to get your child involved in more adult financial decision-making.

Ages 11-13 At this age, the experts recommend having your child set a longer-term goal for something more expensive than the toys he/she may have been saving for. It may also be appropriate explaining how compound interest works to show the benefits of saving over the long term.

9NEWS has teamed up with a local nonprofit called mpowered to offer free resources about all sorts of money topics. For more information about the resources offered by mpowered and its "Keeping Up With the Joneses" campaign, log onto www.keepingupco.org.

(KUSA-TV © 2014 Multimedia Holdings Corporation)


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