Teaching your child about money and finances is easiest when you start early. Here’s a quick review of what you should teach your children at each age if you want them to become financially competent adults:

Preschool

  • Identify coins and bills, and learn what each is worth.
  • Understand that you can’t buy everything (choices are necessary).
  • Save money in a piggy bank.

Grade school

  • Read price tags, and learn comparison-shopping.
  • Do money arithmetic (make change).
  • Manage an allowance, and use it to pay for some purchases.
  • Open a savings account and learn about interest.
  • Participate in family financial discussions about major purchases, vacation choices, etc.

 High school

  • Work to earn money.
  • Budget for larger purchases.
  • Learn to use a checking account.
  • Learn about investing — stocks, mutual funds, CDs, IRAs, etc.
  • Share in financial planning (and saving) for college.

 College

  • Learn about borrowing money (interest, default, etc.).
  • Use credit cards judiciously.
  • Participate in family estate planning discussions.

Knowing about money – how to earn it, use it, invest it and share it — is a critical life skill. It’s never too early to start teaching your children about financial matters.

Ready to set your young one up for success with a solid education savings plan? Schedule a meeting today to start a conversation on what option is right for you www.bas-pc.com/schedule.

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