As parents, we know that financial literacy for kids is critical. But how do we get started? Which topics should we teach, and when? In this post, I'll answer these questions by sharing ten ways to build good money habits in your kids.
Children constantly observe and learn from people and the world around them. Therefore, one of the best ways to instill financial literacy in kids is to model good money habits.
One of the most basic money skills kids can learn is how to save money. A fun way to do that would be to pick out a piggy bank together, then deposit money they earn, find, or receive.
1. Give a very simple primer on how the stock market works. 2. Tell them about index funds and ETFs and how they work. 3. Open a paper trading account for them to practice trading.
You can get them started with an investment account much earlier—perhaps as soon as they have some extra birthday or holiday money.
One of the best ways to teach them is to take them shopping with you. You can then weave in financial literacy lessons by showing them how you spend less on the things you need to buy.