How to teach kids about money

Reporter: Andryanna Sheppard
Published: Updated:

About 74% of teenagers don’t feel confident about their financial education.

That’s according to a survey done by the family financial planning website Greenlight. A study from the University of Cambridge found that lifelong money habits are largely established by age 7.

About four or five parents wish they had learned more about money as kids.

Here are a few ways to help your kids be good with money.

Financial planning experts recommend using effective language and communicating that you control your financial situation.

Instead of saying, “We cannot afford that,” try saying, “That’s not how we choose to spend our money. We want to put savings first.”

Also, try to take advantage of teachable moments. For instance, when shopping, point out discounted items and show your kids how much they can save by purchasing something on sale.

Financial planning experts also recommended helping your little ones create a budget.

One way to do this is to give them small, regular allowances for chores and then help them divide their earnings into needs, wants savings and charity, with dedicated jars for each.

Experts recommend encouraging kids to put 10% and 20% of their earnings into savings. It’s also important to teach them to avoid impulsive purchases by waiting at least a day before they decide to buy anything.

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