Play games sorting, identifying or counting coins. A
lemonade stand (or similar enterprise) can be a fun way to teach about money and
entrepreneurship. Take your child along on shopping trips and explain what makes some
items too expensive and others good buys. At around age 5, begin
giving an allowance the child can put into a piggy bank, wallet or other safe
place. Allow the child to pick out and pay for certain small items in the store. Encourage
generosity by having him or her buy or make gifts for loved ones and give money (coins) to
charity.
Ages 8 to 12: Help your child open a small savings account or even
invest in a mutual fund or individual stock. Consider rewarding your child for good
savings habits by supplementing his or her own deposits or investments. Your child should
start using allowance money to pay for certain unnecessary or expensive items he or she
insists on having from baseball cards to designer clothes. Your child also can earn
extra money doing extra chores around the house, such as yard work. Involve your child in
family discussions about money. Have him or her help you mail bill payments and charitable
donations, scan the newspaper for sales, etc. Encourage your child to make or buy
affordable gifts for loved ones and to give time or money to charitable causes.
Ages 13 to 17:Your child can begin making money outside of the home,
either after school or in the summer, provided the work doesnt interfere with
schoolwork or socializing. Perhaps the best way to start is with odd jobs for friends and
neighbors (babysitting, lawn mowing) as opposed to working for an actual business. For
younger teens, an hour or two during the school week is enough to give a sense of
accomplishment and responsibility (plus income). For older teens, 10 hours a week should
be the maximum. Your childs allowance money and income from odd jobs can be used to
pay for more of his or her non-essential expenses (dates, movies, concert tickets, gas
money). The emphasis should be on learning about the working world and responsibility, not
making thousands of dollars a year in outside income. Summer jobs also offer income and
educational opportunities. Encourage your child to put more money into savings and
investments, to learn more about finances and consumer rights, and to participate in
school investment clubs or other finance-oriented activities with friends. If your child
is college-bound, make sure he or she understands the importance of spending within
your means, being careful with borrowed money, and the need to continue saving and
investing. Continue encouraging him or her to give time and money to charity and to make
or buy gifts for loved ones.