The Piggy Bank: Money Smarts for All Ages

The Piggy Bank: Money Smarts for All Ages

Let’s face it. As adults, even some of us have a hard time when it comes to making good financial decisions. I know for me, I didn’t start thinking of money as a resource until I was late into my teen years. There are various financial truths that everyone needs to understand and lucky for us, there is a program called “Money as You Grow” which is designed to educate our children. I’ll include a link at the end of the blog for you to check out but in the meantime, I thought I’d include these financial truths that, according to these folks, should be taught, by age range.

Ages 3-5

1. You need money to buy things
2. You earn money by working
3. You may have to wait before you can buy something you want
4. There’s a difference between things you want and things you need

Ages 6-10

1. You need to make choices about how to spend your money
2. It’s good to shop around and compare prices before you buy
3. It can be costly and dangerous to share information online
4. Putting your money into a savings account will protect it and you will earn interest

Ages 11-13

1. You should save a dime for every dollar you earn
2. Entering personal information, like a bank or credit card number online is risky because someone could steal it.
3. The sooner you save the faster your money can grow and compound interest
4. Using a credit card is like taking out a loan. If you don’t pay your bill in full every month you will have to pay more than you originally spent due to interest

Ages 14-18

1. When comparing colleges, be sure to consider how much each school will cost
2. You should avoid using credit cards to buy things you can’t afford to pay cash with
3. Your first paycheck may seem smaller than expected because money is taken out for taxes
4. Look into ways to invest and save money other than a bank savings account, such as a Roth IRA

Ages 18+

1. You should use a credit card only if you pay off the money owed in full each month
2. You need health insurance
3. It is important to save up at least three months of living expenses, in case of an emergency
4. When investing, consider the risks and annual expenses.

Source:

http://moneyasyougrow.org/