Things Kids Should Know About Money
Most adults will admit they’ve made a few money-related mistakes along the way. The best way to help your kids avoid some of those mistakes is to begin teaching them about money as early as possible. Here are a few things your kids should understand by the time they reach the age of 11 or 12:
- There’s a big difference in “wants” and “needs.”
- A savings account at a federally-insured bank or credit union is a safe place to keep money.
- Most savings accounts earn interest (including those at Cornerstone!) While it may not be much in today’s low-rate economy, the concept of earning interest is an important one to teach your kids.
- Setting savings goals and working towards them are important money-management lessons.
- A good rule of thumb to follow with your kids is to advise them that personal information should never be given out online.
- To value money, kids need to understand the concept of working for it, whether that’s by babysitting, getting an allowance for doing chores around the house, or setting up a lemonade stand.