A four- or five-year-old child may seem too young to grasp the concept of money management, but even at an early age, children waiting in a supermarket checkout line can see that money buys things. Therefore, it is important to begin as early as possible to help your child understand the value of money.
Here are some suggestions for introducing a young child to the world of finances:
If possible, have your child with you when you pay bills. Explain comparison shopping at the grocery store. Include the whole family in decisions about whether to purchase significant items.
A weekly allowance for necessary expenditures and some discretionary funds can help provide a learning opportunity. However, an allowance should be given with the understanding that certain chores are part of being a member of the family.
Explain the difference between whims, wants, and needs; give your child regular opportunities to save; and describe how to earn money.
Explain how money can also be used to help others.
Partner, Financial Planner
Mike enjoys getting to know and understand his clients and their needs. Mike guides clients through the financial planning process to help them identify their goals and create a plan to achieve them. His expertise is working with folks nearing retirement and young couples looking to save for retirement and plan for their children’s education. Mike retired from the Air Force in 2014 and went back to school as a non-traditional student at the University of Northern Iowa. He obtained a bachelor’s degree in accounting. Mike is a CERTIFIED FINANCIAL PLANNER™, and a member of the National Association of Personal Financial Advisors, XY Planning Network and Fee Only Network.
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