Money $mart Kids Worried about your kids understanding finances? This article will help you understand where your child should be understanding concepts of money by age. Also, we included some suggestions on how to work with your child on money concepts.

Money Skills for 5-8 Year Olds Should start counting coins and bills Should begin to understand the purpose of money Should begin to learn to differentiate between wants and needs Should begin to develop a sense of ethics around money

Suggested Activities for 5-8 Year Olds • Consider starting three savings jars, one for spending, one for saving and one for giving, and then have them count their contributions and write them down on a piece of paper weekly. • Consider offering your kids extra jobs that they can do and pay them extra for them. • Allow your children to purchase their own toys with allowance money. • Take them with you when grocery shopping for the necessities. • Consider having children purchase items out of savings to give to needy families at Christmas and Thanksgiving. • As a family donate your time to local charities.

Money Skills for 9-12 Year Olds Should be able to make change. May begin to show an entrepreneurial spirit. Should begin to show awareness of the cost of things. Should begin to show awareness of how money is earned. Good time to teach how balance a checkbook and a savings account.

Suggested Activities for 9-12 Year Olds • Have your child research going rates of activities such as mowing lawns, babysitting, and other chores. • Have them research jobs and salaries on Monster.com • Have your child shop for dinner within a budget, compare unit costs of items, or have them set up a budget for items that matter to them. • Order annual reports for companies the child buys things from and analyze if they are finan cially successful and why • Help your child set up a savings account that can’t be touched for a period of time, and is used to save for a goal set by the child.

Money Skills for 13-15 Year Olds • Should learn to comparison shop – to compare the prices of similar items • Should begin to understand the relationship of time to money - how interest adds up over time. • Should begin to earn money and initiates small ventures –perhaps take initiative to do small jobs or start a small business to earn extra money. • Can start to commit to savings goals. • Should develop an understanding of investment basics. • Should be able to connect money and the future – how they can use money to accomplish their goals • Should begin to understand philanthropy – how to do it and why it’s important • Good time to teach how to read a bank statement • Should start to understand dividends and interest.

Suggested Activities for 13-15 Year Olds • Introduce and explain the concept of impulse buying – have them point it out how stores and the media encourage people to buy when it’s not necessary. • Consider giving them a biography of an entrepreneur. • Find a business plan competition that your child can enter. • When you come across articles of items that the child likes to use, cut them out and have them read them and tell you if they are a good investment. • Have them research 10 jobs and find out the salaries associated with them. • Introduce the idea of socially responsible investing.

Money Skills for 16-18 Year Olds • They should actively save, spend, and invest. • Should be able to now connect goals and saving. • Should experience financial responsibility for self and, perhaps, others. • Should be able to talk about money and plan for future. • Should understand how money and power are often connected. • Should now be able to read a paycheck and basic tax forms. • Should be demonstrating the beginning of economic self-sufficiency.

Suggested Activities for 16-18 Year Olds • Have your teen fill out a tax return form, or help you. • Have your child write their top 5 financial concerns and discuss them. • Have your teen go with you when you go to purchase your next expensive purchase. • Have your child develop budgets for an income of $23,000, $65,000, and $150,000 (make sure they include taxes) and how they would live on these • Have your teen talk with your financial advisor if you have one.

Savings Tips and Games Teach kids to pay themselves first – Have them save a portion of their money before they spend any on anything else. Help young kids set visible, short-term goals Make saving fun through using interesting banks or Lucite coin sorters Help kids set a budget and track income and expenditures for a period of time. Collect coins with your kids and put them in jars that they can see Give your children a certain amount of money for gifts, but encourage them to make their own presents, cards, etc. and put the money they save towards a trip to someplace they want to go.

Activities to Teach Children About Giving Have your children investigate several charities and choose one to give to and agree to match their contribution Have kids adopt a child or family over the holidays and go shopping for gifts to them. Go with your kids to volunteer time to help a person who is older or has a disability. On Valentine’s day give them money to make a contribution to a charity that’s close to their heart