(WGHP) — 11-year-old Liam has learned important lessons on how to budget money.
“In our house, we have three jars. One is for saving, one is for giving and one is for spending,” he said.
It’s a concept that’s simple enough for kids to understand and for parents to execute.
“Kids shouldn’t come into adulthood and be like ‘wait what am I doing with my money?’ It’s just good to know that ahead and before you actually have to deal with that, so you come in prepared and ready,” Liam said.
A lot of parents wait too long to teach their kids about money. Tim Maurer with Triad Financial Advisors encourages parents of young children to use everyday activities as teaching opportunities.
Some of the best parenting advice I ever got applies here to finances as well, and that is whenever your kids are inquisitive, when they demonstrate their curiosity about money and how you spend it… that is an awesome opportunity! Capitalize on that opportunity and teach them,” Maurer said.
For example, if you’re in the fast-food drive-thru, explain the cost of the hamburger versus the cost of the bacon cheeseburger.
Also, talk to your children about the family budget. You decide how many specifics to disclose. Maurer recommends the app Greenlight for older children to help them do their own saving, giving and spending.
“It has a save feature It has even an invest feature, and it has a share feature. My kids can choose a nonprofit a 501c3 and give directly to that nonprofit through their Greenlight app,” Maurer said.
CapitalOne also offers a checking account for children eight and older. The child can learn to manage money while the parent maintains control.
We work to make sure our kids get a good education. Shouldn’t that education include money management as well? Let the learning begin early and at home.