Michael Joyce sat down recently with Rachel DePompa of NBC12 to discuss helping children learn about finances. The story, “Tips to Teach Children of All Ages About Money,” has been distributed nationally through InvestigateTV.Watch the story.
Piggy Bank Savings
Because children begin forming money habits early in life, Michael encourages parents to teach them the importance of saving early. It can be as simple as buying a piggy bank for your child to fill with loose change or money from chores.
Teens Can Learn about Compound Interest by Opening Investment Accounts
As they get older, Michael suggests helping teenagers open an investment account. When his son earned money from a summer job, for example, Michael helped him open a Roth IRA. “Part of this was teaching him about compound interest and how if you save this money today, how much it could be worth in the future,” he said.
Teaching Children to Think About Their Financial Future
Michael says that the goal is to teach your children to think about their financial future. “…[E]ven for short-term things, if they want to buy a new Xbox or a bike, you know, teach them the benefit of saving some money, putting a little bit away to contribute towards those purchases,” he said.
Financial Education Resources
Agili Financial Planning Analyst, Jen Pieson, developed a fun and informative resource for educating children about money: Kid’s Personal Finance Game. The series features eight lessons on the following topics: interest, inflation, debit vs. credit, stocks, community, budgeting, risk, phases of life, and mistakes.
In addition, the Consumer Financial Protection Bureau (CFPB) has free financial lesson plans for parents and teachers, with topics geared for children as young as three through young adult.