As parents, we strive to do what is best for our kids — to ensure they have the know-how they need for financial success.
So, we gathered our brain-power here at the LSS Center for Financial Resources to come up with financial skills to teach kids (according to their age):
- Identify coins & bills in their correct name
- Know how many cents each coin is worth
- Trade coins for something when you go shopping
- Start managing a small allowance
- Know where money comes from (work)
- Know that banks help keep our money safe until we need it
- Understand coin equivalents
- Make simple change
- Divide allowance between spending, saving and sharing.
- Read price tags & look for things on sale
- Make appropriate amounts of money for things to buy.
- Make sure he/she receives correct change for a purchase.
- Recognize that TV commercials aren’t real life
- Save toward a short-term goal (no longer than 1 month)
- Realize they can earn money by doing extra jobs
- Keep a money diary
- Compare prices when shopping
- Cooperate with family efforts to save water, lights, gas, etc.
- Save a small amount each week for a large purchase.
- Ask questions when considering a purchase
- Look at value, not just the cost of products.
- Understand the principle of compound interest
- Understand fixed expenses and flexible expenses
- Adjust flexible expenses to stay within a spending plan
- Understand and use correct terms for banking transactions
- Understand the value of wise investing.
- Operate a small business enterprise for one month.
- Open a checking and savings account & understand fees
- Balance a checkbook
- Create a budget on their own that meets all their expenses
- Stay on a budget for 6 months w/o asking a parent for help
- Understand the costs of using credit cards
- Obtain a credit report
- Know how to read a lease & what to look for before signing it
- Know how to shop around and obtain insurance
- Know how to file a state and federal income tax form