The Fed’s next rate increase is unlikely to be discussed by your second grader. According to PBS.org, their money habits are established by seven years of age. These are four ways to get your child interested in financial matters.
1. That’s why there is an app.
While screen time may not be appealing to most parents, children need to use that screen time to help them develop a money mindset. FamZoo and Greenlight make virtual banking fun for the whole family.
Children can learn how to earn cash and spend wisely with allowance transfers and debit cards. They don’t have to worry about overdraft fees or other penalties. Parents control their children’s experiences by restricting purchases and reviewing each transaction.
2. Open a custodial Roth IRA
An IRA is a great way to help your child learn when they start receiving income. Children will feel proud to have an account that is theirs and funded by their hard work as they begin the journey towards a secure retirement.
Don’t forget about investments. Please encourage your child’s interest in investing and help them to become a long-term investor. Diversifying their holdings is important. Nothing can discourage a child more than seeing their hard-earned money disappear.
Are you looking for the best Roth IRAs? Our best of 2022 list is your best choice.
3. These people can be your financial copilot
How can you invest your retirement savings? Demonstrate to them what you are doing. Are you running to the bank? Present them to the bank teller. Are you interested in meeting with a financial advisor? You can take them along; you might even be able to get a fool. Make financial education experiential.
According to a 2018 study, college students are better equipped with financial knowledge if they have good family communication. Your children gain valuable experience in financial planning by sharing their financial situation with you. While it is important to understand the basics, hands-on experience is what will encourage their interest.
4. Learning in the classroom (yes, really)
Although financial literacy classes for public schools have a long way to travel, some non-profit organizations are helping to fill the gap. Jump$tart Coalition and Junior Achievement are two examples of organizations that bring personal finance to the classroom.
You have a lot to do with what your child is learning in school. Check if your child’s school offers these or other personal finance programs. Talk to the school administration if they don’t show these programs. Get involved if they are. Volunteers are encouraged. Every parent should be an advocate for financial literacy.
Alert: The highest cashback card we have seen has a 0% intro APR through 2023
It could cost you serious money if you use the wrong debit or credit card. Our experts love this top pick. It has a 0% intro APR up to 2023, a crazy cashback rate of as high as 5%, and it all happens for no annual fees.
