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The Penny Hoarder’s Ultimate Guide to Teaching Your Kids about Money
Every year during Financial Literacy Month — April — the American Bankers Association celebrates Teach Children to Save Day.
The holiday is part of the Teach Children to Save education initiative that bankers participate in year round. Today and throughout the year, bankers around the country reach out to kids in their communities to teach the value of saving.
Here Are Our Best Articles on Teaching Kids About Money
We’re not bankers, but we sure do support financial literacy for kids (and kids at heart)! Here’s the best advice we’ve found to help you set your kids up for a bright future.
What to Know — Even if You’re Bad With Money
- Only 17 states require personal finance education — even though it’s proven to result in higher credit scores. That means it’s up to you to teach your kids about money, whether you’re an expert or not.
- Do you worry about teaching your kids money skills, because you’re not so hot yourself? Take advantage of these seven everyday opportunities to talk to them about money — it’s simpler than you think!
- It may be difficult even for adults to explain how compound interest works… Here’s how to explain it to your kids.
- Worried about how much time your tweens are playing Minecraft? This should ease your conscience: It’s teaching them real-world money skills.
- If you’ve got particularly enterprising kids or teens, encourage them to start a business. Here are 14 fun, age-appropriate ideas.
Extreme Methods From Real Parents
- Ever thought about having your kids sign a contract for allowance? That’s how this dad is teaching his teenagers financial responsibility.
- This rich dad sent his son away with no phone, no connections and no money to find work for himself. Hardcore!
- It’s a never-ending debate: Should kids get an allowance?
- Celebrity chef Gordon Ramsay won’t leave any of his money to his kids — here’s why.
Advice From Money Experts
- No one wants a toddler who throws tantrums whenever they don’t get their way or a teenager who doesn’t appreciate what they’ve been given. (Er, we assume.) If you want to raise money-savvy kids who aren’t spoiled, try these nine tips.
- What do your kids do with cash gifts from birthdays or holidays? Here’s what Suze Orman recommends.
- We found a book club your kids will actually enjoy. And it’s all about money.
Talking About College
- While higher education feels like a certainty for younger generations, what’s uncertain is just how they’ll pay for it. Help your kids get an education without a lifetime of debt by talking to them about it now.
(Pst, don’t know where to start the conversation? Our guide to student loans should help.)
When Your Kids Are REALLY Young
- Think your kids are too young to talk about money? You can start at any age! Here are five things your 5-year-old should know about money.
- This mom takes her toddler bargain hunting and gets her involved in cooking to teach her about saving money and budgeting for a family.
- This family uses a jar budgeting method to teach their 6-year-old about budgeting, saving and even donating to charity.
Your Turn: What tips can you add for teaching kids about money?
Dana Sitar (@danasitar) is a senior writer at The Penny Hoarder. She’s written for Huffington Post, Entrepreneur.com, Writer’s Digest and more, attempting humor wherever it’s allowed (and sometimes where it’s not).