It is never too early to start teaching your children about money. In fact, the sooner they start learning these valuable lessons, the better off they will be in the future.
Here are some of the most important money lessons that children must learn at an early age.
1. How to Save Money
Encourage your child to start saving for a specific goal, such as saving up for a new toy or a trip to Disney World.
2. How to Spend Money Wisely
Teach your child to think about what they need versus what they want, and to compare the cost of different items before making a purchase.
3. How to Generate Income
Help your child come up with ideas for ways to make some extra cash, such as starting a lawn care business or selling lemonade on the street corner.
4. The Value of a Single Dollar
Show your child the worth of a dollar by breaking down everyday expenses into fractions and percentages.
5. Earning Interest on Money
Show your child how their money can grow over time if you keep it in an interest bearing account instead of spending it right away.
6. The Importance of Knowing Debt
Explain to your child how borrowing money can get them into trouble if they are not careful.