In this episode of Financial Clarity for Doctors, Corey and Rachelle jump into a topic that is near and dear to their hearts. Teaching the little ones about money! Money has been a taboo subject for too long. When we don’t talk about it, we fail to set our kids up for success. It’s important for them to understand, even at an early age, that every piece of clothing, every toy, even the roof of their head requires resources of time and money. There are many age-appropriate ways to teach kids about money.
Some teaching examples by age include:
- At any age:
- Point out the cost of individual items.
- Talk about wants vs needs.
- Talk with them about the tradeoffs of time and money. If we work more, we have more money, but less time to spend with you. What do you think about that?
- Ages 5 and under:
- Sticker or token system for chores or good behavior. Can be exchanged for a reward of your choice.
- Ages 5 and up:
- Consider a small allowance.
- Discuss saving for something larger vs making smaller purchases.
- Open a savings account for them and give them interest credits.
- Play games that use money.
- If you have any accounts set up for them (like a 529) explain it to them and look at it with them periodically.
- Ages 12 and up:
- Consider a larger allowance and more responsibility for their own expenses. Give them a chance to manage their own budget with low stakes.
- Enter a stock market simulation contest.
Money is not everything, but it is a very important part of how the world works. Talking with kids about it on a regular basis will help them make better decisions when they are older, and you can’t look over their shoulder any more.
For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
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