20 Things Kids Need to Know for a Healthy Financial Life
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Imagine understanding how money, loans, and credit works before ever having to use them. Could it be possible to empower future generations to utilize money as a tool that benefits their lives rather than a stressor?
Teaching children to save is possible and The Friendship State Bank believes that when saving starts out fun, it develops lifelong habits for living financially smart. That’s why The Friendship State Bank hosts special kids only Kid$ave Events to celebrate the development of those smart financial choices.
Knowing when and how to start teaching kids about money can be challenging. The Consumer Financial Protection Bureau offers numerous tools to help parents and caregivers. They recommend introducing kids to the concept of money as early as age three.
Here are 20 things they recommend kids know as they grow.
3 - 5 Years Old
1. You need money to buy things.
2. You earn money by working.
3. You may have to wait before you can buy something you want.
4. There’s a difference between things you want and things you need.
6 - 10 Years Old
5. You need to make choices about how to spend your money.
6. It’s good to shop around and compare prices before you buy.
7. It can be costly and dangerous to share information online.
8. Putting your money in a savings account will protect it and pay you interest.
11 - 13 Years Old
9. You should save at least a dime for every dollar you receive.
10. Entering personal information, like a bank or credit card number, online is risky because someone could steal it.
11. The sooner you save, the faster your money can grow from compound interest.
12. Using a credit card is like taking out a loan; if you don’t pay your bill in full every month, you’ll be charged interest and owe more than you originally spent.
14 – 18 Years Old
13. When comparing colleges, be sure to consider how much each school would cost you.
14. You should avoid using credit cards to buy things you can’t afford to pay for with cash.
15. Your first paycheck may seem smaller than expected since money is taken out for taxes.
16. A great place to save and invest the money you earn is in a Roth IRA.
18 + Years Old
17. You should use a credit card only if you can pay off the money owed in full each month.
18. You need health insurance.
19. It’s important to save at least three months’ worth of living expenses in case of an emergency.
20. When investing, consider the risks and annual expenses.
18. You need health insurance.
19. It’s important to save at least three months’ worth of living expenses in case of an emergency.
20. When investing, consider the risks and annual expenses.
Visit Money As You Grow for creative ideas and tools for helping kids grasp these financial concepts. They even have a free, downloadable Money Monsters Book series with action ideas for practicing the lessons taught in each story!
Your favorite Friendship State Bankers love being part of kids’ financial journeys. They are always welcome to ask questions, learn about opening an account, make deposits, talk about establishing credit, and to learn that bankers are helpful people that they can trust.
You can Rely on Friendship.
Open Kid$ave Savings Account Now