5 Financial Tips for Kids
Teaching children the importance of hard work is part of what Godfrey calls the “no entitlement program.”
“It’s about raising kids who understand money doesn’t grow on trees,” she says. You’ll know your child is ready to learn what it means to have a job when she starts nagging for money to buy things. “Once your kid recognizes that you’re using money to make purchases, usually around 3 years old, it’s time to teach her where that money comes from,” adds Godfrey.
Best Approach: Discuss how you picked your career, and what you do at work–and then ask her what she might like to be when she’s older. Consider also paying your kid extra cash, beyond her allowance, for tasks that she accomplishes related to that career. For example, if she wants to be a veterinarian, put her in charge of walking, bathing and feeding the dog, and pay her slightly extra for the tasks.