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Teaching Your Kids the Basics of Finances

Learning how to handle, where to invest, and what not to do with money are skills everyone needs to be successful in life. The earlier kids are introduced to smart money-management practices, the better prepared they’ll be to handle their finances when they leave the nest. Teaching your kids how to protect their money is a lesson with unlimited value.

A penny saved

When kids get money for a birthday or Christmas present, their imaginations take over as they picture everything they will buy at the store. Now is your chance to step in and teach a valuable lesson about saving.

“Label three mason jars as Save, Share and Spend,” advises Forbes Contributor Liz Frazier Peck. “Divide any money your child receives through allowance and gifts into these three jars. I recommend putting 10 percent in the Share jar with each deposit. Split the rest between the other two based on their goals. Help them decide what to buy with the Save jar proceeds, and track how much they have and how much they need. This will be their first budget.”

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