You want your children to have the skills and knowledge to manage their money wisely. Gaining this vital life skill is less about luck and more about us giving them the tools they need to be responsible money managers later in life. We all want to give our children everything their heart desires but teaching them a lesson that will last them a lifetime is much more valuable than any physical object that we could provide them. It can be hard to argue the concept of delayed gratification with children but by starting early and training your children to understand money concepts and the value of saving, you can ensure their financial success later in life. You may think these concepts do not need to be introduced until children are older but if you start early with simple concepts and build upon those concepts as they grow then they will grow with a better understanding of money and finances.
Parents may not be sure what types of money related concepts are age appropriate for their children so this infographic can be a huge help in showing what age to introduce different concepts. Simple concepts such as why people work and what we use money for are easy enough for children as young as three years old to understand and because these concepts are obvious to all of us, sometimes we may forget to start with explanations as simple as these. By the age of six most children can begin to understand the idea of comparing prices before making a purchase and having to make choices about how to spend their money. At age 11 you can start introducing topics on how much to save and how credit cards work. After age 14 children can start learning about different ways to save money and when using a credit card is a bad idea. Age 18 and up can handle issues such as how much savings to have for emergencies and the basics of investing.
This infographic demonstrates the benefit of starting early and key concepts to understand about money management in each age group including saving, the power of thoughtful spending and the discipline to avoid long term revolving debt as key strategies to maintaining financial well being. It also demonstrates the purchase drive and motivations at each age group.