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As all parents know, every child learns at a different pace. However, there are suggested ages for when children should learn to walk, talk, count, and spell
Personal finance is no different. There are lots of concepts to grasp, and it can be difficult to know when a child is ready to tackle one.
It’s important to remember that young people many be ready to take on an aspect of finance well before his or her peers. A great example of this comes for young business owners. They need a business checking account and perhaps and business credit card well before their peers are ready to handle — or even need — a personal credit card. So be sure to address your child’s needs individually.
However, here are a few general age guidelines designed to help all parents know when to introduce a new financial concept:
Ages 0 to 3 — Start the conversation
Ages 3 to 5 — Open a savings account
Ages 5 to 8 — Understand how choices impact cash flow
Ages 9 to 11 – Participate in the process to earn, spend, save, and share
Ages 12 to 15 – Open a checking account
Ages 14 and up — Credit, loans and investing
Watch this video to get more details about the milestones to hit at each level.
As always, please leave me questions and feedback below. I’m happy to help any parent who needs it!
