A recent study found that more than 1 in 4 Americans have never talked about money with their parents. Local financial professional Michael Stevens from Capital Wealth Advisors joins the show to talk about activities and conversation topics to discuss with children to help them learn the value of money!
Stevens discussed how breaking conversations down by age can help kids to understand the overall value of money. Starting simple and introducing more complex topics as children age can enhance understanding.
At ages 0-5, Stevens said that the goal is simply to introduce the idea of money. Using play money and teaching the exchange of money by making up scenarios can build the groundwork for understanding the value.
In elementary, Stevens recommends teaching through play. Introducing them to Monopoly and the Game of Life stimulates the opportunity to invest, and introduces them to concepts of adulthood. Giving a child an allowance at this age can also help to assign value to a dollar.
Middle school offers the opportunity to explain good money habits. Setting up a lemonade stand or earning money by babysitting or pet sitting can offer a great way for kids to earn money. Then, introduce them to the idea of saving, spending, and giving involving the concept of money.
High school is a time to set up financial success. At this point, a child may get an after-school job to save for a car or for college. Helping children open a checking or savings account and introducing them to a budget helps kids to understand how to use money as they enter adulthood. Stevens also talks about creating a budget sheet, and offers the opportunity for a template on their website to get things started!
Stevens also encourages parents to lead by example. Using a budget for household items, letting kids participate and weigh in provides a learning opportunity for kids.