Setting a good foundation for their financial health
STAGE 1
Ages 3-5
KIDS’ GOALS
- Understand the concept of money
- Know that money buys products and services
- Learn that you need to earn money by working
- Open a bank account for depositing monetary gifts
PARENTS’ GOALS
- Help kids identify various denominations, sort coins by sizes, play money-based games
- Take kids shopping. Let them pay for small things.
- Explain that they must wait before they can buy what they want
STAGE 2
Ages 6-10
KIDS’ GOALS
- Set short-term goals
- Start saving towards those goals through healthy habits
- Learn responsibility by making spending decisions
PARENTS’ GOALS
- Buy a piggy bank to collect change
- Start a weekly allowance. Explain how they can save towards a favorite toy instead of immediate gratification
- Give kids the freedom to decide what they want to buy
STAGE 3
Ages 11-13
KIDS’ GOALS
- Carry out financial transactions on their own
- Learn the value of money
- Set medium-term goals
PARENTS’ GOALS
- Teach them to save 10% of what they earn
- Set boundaries on what you will buy and what they must save for
STAGE 4
Ages 14-18
KIDS’ GOALS
- Learn household budgeting
- Understand credit instruments
- Take up a part-time job
PARENTS’ GOALS
- Make sure they understand that they can spend on friends, gadgets, dining AND still live within their means if they budget
- Tell them all about credit and debit cards, even get the latter for them, but have them use it only under your supervision
- Your kids should be introduced to concepts such as investment avenues, loans, taxes and insurance