<h1>Teaching Kids Financial Responsibility: Experts Weigh In</h1>
<p>Whether you give your children an allowance, allow them to earn money by completing household chores, pass along cash gifts from relatives or encourage small-stakes entrepreneurship like a lemonade stand, your kids are already practicing some money management. Even just understanding that they need to ask you to purchase something they want is proof that they have a basic understanding of how money works. Sometimes parents put off talking to their kids about money because they think they are too little to understand finances. Others are uncomfortable talking about money in general, so they avoid the topic.</p>
<p>While you don’t need to explain compound interest to a kindergartner, there are lots of concepts that can be introduced in a kid-friendly way. We asked financial experts, some of whom are also parents, to identify the one thing they believe kids should learn early on to set them up for a lifetime of financial security and success. Here’s what they had to say.</p>
<h2>The Value Of Money</h2>
<p>“Understanding the value of money means understanding what it takes to earn, manage, and grow it,” says Bola Sokunbi, founder and CEO of Clever Girl Finance. Sokunbi teaches her own children about money by allowing them to make small money mistakes with the money she gives them. For example, if they spend all their pocket money on candy, they won’t have anything left to save or invest. Sokunbi explains that practicing with small amounts will help kids make better decisions in the future when they’re dealing with larger sums of money.</p>
<p>Sokunbi emphasizes that financial education is not just for the rich. Parents can turn a trip to the grocery store into a learning experience by having their kids figure out how many items on the grocery list they can buy with the budget they have. They can also find sales and less expensive products to save money. This teaches kids about making choices with their money and the importance of budgeting.</p>
<h2>They Should Keep Learning</h2>
<p>Financial savvy is a skill that can be learned. Teaching kids about money can be as simple as opening up a conversation about how they want to spend their money. This can create a foundation for lifelong money discussions. Financial educator Kara Perez highlights the importance of using knowledge about money to change our lives. Learning about money management enabled her to pay off a significant amount of student debt, proving that financial education is valuable.</p>
<h2>Money Should Support Your Joy And Wellness</h2>
<p>Money is a tool to support your overall well-being. Your budget should include both present wellness and future investments. Rita-Soledad Fernández Paulino, founder of financial education community Wealth Para Todos, emphasizes the importance of modeling this behavior for children. By taking care of ourselves physically and emotionally, we show our kids that money is meant to be used to support our happiness and well-being.</p>
<h2>Money Isn’t A Taboo Topic</h2>
<p>Parents should start teaching their children about money early on, using age-appropriate topics. Shang Saavedra, a financial coach, stresses the importance of discussing money openly. Children as young as 4 and 5 can begin understanding money as a concept, and higher-order ideas can be introduced as they get older and start making plans for their future. Avoiding the topic of money can leave children ill-equipped to handle their finances later in life.</p>
<h2>The Importance Of Saving</h2>
<p>Saving is not just about emergencies or long-term goals, but also about enjoying your money. Financial counselor Jen Hemphill believes that we should teach our kids to save for fun as well. Even young children can grasp the concept of saving for something they want in the future. Encourage your teens to think about building up savings with compound interest. By sharing your own financial successes and mistakes, you can empower your children to make wise financial decisions.</p>
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