Teach Them Young: Best time and methods to teach kids about money for lifelong success!

financialexpress.com:

In today’s times, parents have the added responsibility of empowering their children with financial literacy skills. They must help kids understand the concepts of earning, budgeting, saving and investing, starting from a young age. In a way, parents can pave the way for their child’s lifelong financial success. Beyond meeting educational needs, parents need to instil a sense of financial responsibility in their kids from early on so that they can confidently navigate the complexities of personal finance later in their lives.

For parents, teaching their kids about money, saving and investing might seem overwhelming at times. But knowing when and how to start teaching your child about money and investing can make a big difference in their financial future.

Starting early is key to laying a strong foundation for kids’ financial future. The sooner they are given financial literacy training, the more they stand to gain in the long run. As a parent, you can make learning about money more enjoyable for kids by incorporating games or creating a pretend store where they can practice budgeting and decision-making. You can also use real-life examples to show how personal finance concepts apply to everyday life. Remember that, you need to make it easier for them to grasp and retain information. Also, as a parent you should lead by example and demonstrate to them good financial habits and decision-making. They will look at you as a role model while navigating their own financial journey in their lives.

Also read: Key to long-term investing: ‘Time in the market’ more important than ‘timing the market’

Here are examples of age groups during which children can learn financial literacy, ensuring their financial success:

Preschool