The Piggy Bank: Sensible Spending for Ages 9-12
I was lucky enough to stumble upon an amazing infographic that laid out some age appropriate lessons that lend themselves to sensible spending in the future! This is an important topic because while our kids are learning a lot of valuable information in school, only 17 states require a high school course in personal finance. That means this responsibility falls on the parents This week we are going to look at the recommendations and abilities of a child between the ages of nine and twelve.
Here’s where the complicated topics begin to be addressed. During these ages, it is advised that parents teach their kids about taxes, inflation, interest, and loans. At this age, your kids are going to be able to comprehend abstract thoughts and therefore are ready to start delving into these new topics. We also want them to be applying as many skills as we can, after all, don’t most of us learn better by doing than listening? I’ve included some of these suggestions below:
- Take them to the Bank to open a savings account.
- Explain to them the difference between debit and credit cards. You want them to understand that one is money coming out of your bank account while the other is money you will have to pay back
- Have a garage sale. Let them help price the items and keep the money from the sale of their items.
- While shopping, discuss why you are choosing certain items. This is especially true when it comes to picking out an item of quality. Teach them the process involved with researching items they want to buy and how to make the most informed decision.
By doing these things you will be setting the foundation for your child’s personal financial outlook and will be able to build on a strong base. Check back next week as we continue into the next age bracket!
Sources: http://www.visualistan.com/2015/04/the-road-to-responsible-spending-infographic.html