How to teach your kids about money


Summer is the perfect time for money lessons

 

Studies have shown that kids whose parents talk to them about money are more financially confident. And although it may seem like they’re not listening, your kids look to you for guidance about finances. So, once they’ve joyfully tossed their backpacks aside for the summer, take advantage of opportunities to shape your children’s attitudes, habits and values around money with lessons for every age.

Preschool:
Help your children learn through play, with messages about working to earn money and using money to buy things.
Ages 7 – 12:
Talk about financial priorities and help your kids learn to save toward a goal.
Ages 13 – 17:
Work with your teenager on setting budgets, being a smart consumer and engaging in philanthropy. And at this age, you can encourage your child to earn money outside the home by babysitting or working as a camp counselor.
Age 18+:
Your child is getting ready for independence and will need to be educated about credit cards and college spending (including rent and big-ticket items).

Kids want to learn from their parents about money, but how often do parents say they have money conversations with their kids?*

• Once a month or less – 36%
• A few times a month – 30%
• Once a week or more – 34%

Need guidance or additional resources to help you raise financially responsible children? Give your Luma Wealth advisor a call.


*Source: 11th Annual Parents, Kids & Money Survey, T. Rowe Price®