<h2 style="font-weight: 400; font-size: x-large;" id="it-s-never-too-early-to-focus-on-family-cash-conversations-from-the-fundamentals-of-saving-money-to-complex-concepts-like-compound-interest-and-credit-cards-instilling-a-solid-foundation-of-good-money-habits-early-on-can-be-one-of-the-best-things-you-do-to-set-them-up-for-success">It's never too early to focus on family cash conversations. From the fundamentals of saving money, to complex concepts like compound interest and credit cards, instilling a solid foundation of good money habits early on can be one of the best things you do to set them up for success.</h2>
<p>Here's an age-appropriate game plan, along with fun games that can help, for raising your kiddos to become financially independent adults. </p>
<h3>From Pre-K to 2nd Grade</h3>
<p>From the time your child is around 3 or 4 years old, you can start teaching them to feel comfortable <a href="/learning-center/personal-banking/teaching-kids-about-money-10-common-mistakes">talking about money</a> and introduce some basic concepts. High-level topics like wants vs. needs or delayed gratification can't be learned if kids get everything they ask for all the time, however.</p>
<p>Instead of just saying, "Because I said no" when your kid asks why they can't have something they saw online, you can try saying something like, “We can't get that building set today, but if you save up the money you
get from your birthday next month, we can place an order." Or, you might say, “Even though you want to go to the movies this weekend, it's expensive and we have to use that money to pay for the school supplies you need."</p>
<p><em><strong>Gamify your lesson:</strong></em> Turn thinking about money decisions into a game of "The Price Is Right" the next time you're out together. For instance, have them guess how many dollars things cost, or which item is the most expensive. Or, challenge them by giving them a small budget (say $5) and asking that they pick as many items as they can without going over. This will help create awareness about the value of things.</p>
<h3>3rd to 5th Grade</h3>
<p>By around 9 or 10 years old, kids can really start to understand how to save and allocate money toward different goals. You can try using a jar or envelope system (label them "Spend," "Save," and "Give"), or find an app that divides money into different buckets for them. That way when they get an allowance or monetary gift, instead of blowing it at the candy store or on in-app purchases in one shot, they will pause and think through their short- and long-term goals.</p>
<p><em><strong>Gamify your lesson:</strong></em> Pull out games like Payday or Monopoly, or download The Game of Life app. While you're playing, it can open up all kinds of conversations about the smartest ways to use money in order to win the game – the perfect segue into how those concepts work in real life, too.</p>
<h3>Middle School</h3>
<p>As kids begin to learn how to work with percentages in math class, it's time to start bringing up how interest works – paying it and earning it. The easiest way is to open a high-yield savings account, and showing how the balance earns interest each month. Getting extra money for doing nothing? That'll hook them for life!</p>
<p>On the other hand, you'll also want to explain that when you borrow money (or use credit cards), you're the one that has to pay the interest. Demonstrate how it works the next time they ask for cash to buy something because they are short on funds. Explain that you'll lend them $10, but when they pay you back, it will cost them $12.</p>
<p><em><strong>Gamify your lesson:</strong></em> Look for children's apps that include interactive games, quizzes, and animated videos that teach money concepts. </p>
<h3>High School</h3>
<p>Building credit isn't something you should wait to talk about until your older teen has their first credit card. Add your high schooler on as an authorized user (assuming your credit is strong) so their credit file and <a href="/learning-center/personal-banking/understanding-credit-score-appointment">credit score</a> can start building up, and sit them down to talk about what a credit report is and how it affects them.</p>
<p>Just compare it to the school report card they get. Just as their class performance (like losing points on an assignment for turning it in late) determines their grade, explain that they will eventually be scored on if they pay their bills on time and other financial behavior.</p>
<p>Then take the metaphor even further. The people with the best grades make the dean's list and have a chance at scholarships, while the people with the highest credit scores have the best chance of getting approved for car loans, getting apartments, and qualifying for the best rates, which can save tons of money.</p>
<p><em><strong>Gamify your lesson:</strong></em> If your kids are still playing video games like Roblox and Fortnite, instead of arguing about screen time, strike up a conversation about their gaming strategy and what they've learned about not wasting their online bucks. In the game Animal Crossing, they're even managing a mortgage and playing the “stalk" market. Once you've got them talking, relate it back to real-life money decisions you and your partner make for the family.</p>
<h3>College-Bound and Beyond</h3>
<p>Investing from a young age is so important, and this is the perfect time to build upon those compound interest lessons you introduced years ago. As your <a href="/learning-center/personal-banking/tips-for-parents-to-help-kids-with-their-checking-account">older teen</a> takes on part-time work and earns money, introduce them to investment vehicles that can grow into large amounts for their future, like Roth IRAs.</p>
<p>The other big topic of discussion is paying for college. Be open and honest with your teen about if and how you are going to contribute to the cost, what their future career plans are and how that might impact their ability to pay back student debt, and how finances should factor into their ultimate school choice.</p>
<p><em><strong>Gamify your lesson:</strong></em> Look for apps or sites that make investing accessible to young people, such as fantasy stock exchanges that let them experiment with play money. </p>
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Teaching Kids About Money from Pre-K Through College

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Teaching Kids About Money from Pre-K Through College