Parents are a child’s first teacher. Teaching kids about the power of saving money is just another lesson that parents can help their children learn at an early age. Just like riding a tricycle or driving a car, money-management lessons differ at various ages:
• Kids Ages 4 & 5:
As your child prepares for school, add a piggy bank to your list of back-to-school items, or pull that dusty piggy bank from the shelf. Make a habit of saving a portion of what kids receive as gifts or money that you may give them.
• Kids Ages 6 – 9:
This is the age where kids might start receiving an allowance for specific chores around the house. Discuss a specific savings goal with your child, and discuss how much of their allowance to save and the time needed to meet the goal.
• Kids Ages 10 to 12:
Many kids experience their first paid job at this age. Babysitting, pet-sitting, or mowing a lawn are typical first jobs. Show your child the freedom they can “earn” by saving money from their jobs, and purchasing items with their money. Electronics are very popular, and the latest gadgets cost money. Electronic purchases pose a great savings opportunity for youth.
• Kids Ages 13 to 19:
Kids at this age start their first part-time jobs, and start thinking about their financial futures. Visit with your child about the best way to handle their additional earnings. Take time to visit with your teen about ATM usage, the costs of automobiles/mopeds/motorcycles and insurance, and the proper use of credit.
Teaching your kids about money is a skill that they will use their entire life. Take time today to start a money management lesson, no matter your child’s age.
These tips are provided by Iowa State Bank. If you have specific questions, contact your local banker at Iowa State Bank. Iowa State Bank is an Equal Opportunity Lender. Member FDIC.