As time changes and the world grows and matures, it is important to prepare your children with banking knowledge. There are some ways that you could go about teaching your children the basics of money.
Around these young ages, the idea of money should be introduced. Provide knowledge that will introduce your child to counting, then explain the concepts of earning, giving, and saving.
At this point, it is important for your child to
understand the concept of financial consequences. Examples of this include learning about a budget, identity theft, debt, and interest.
This is the time for your child to learn about preparing for the real world. They should learn about and understand taxes, the importance of a good credit score, and the differences between good debt and bad debt. Now that your child knows all they need to know to understand money, they will be prepared to take on the world!
Once your child has grown a bit, they should learn about how money can be spent in different ways. This includes the idea of setting financial goals and the fact that we must work for money.
Now is the time to teach the idea of constructing wealth. Stocks and bonds should be introduced, as well as other forms of making money. Now is a good time to open up your child’s first bank account with them.