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Teach Your Child About Personal Finance
Step 1: Start talking about personal finance with your child as early as age 3. Take her to the market and explain that you earn money so that you can buy things you need.
Step 2: Give your child a small amount of money and let her buy something on her own.
Step 3: Begin giving your child a small weekly allowance when she is 6 or 7 years old, and set guidelines about how she can use the money
Step 4: Avoid withholding allowance if your child doesn't fulfill a responsibility; choose another form of discipline instead. It's hard for a child to learn budgeting skills if she doesn't know how much money will be coming in each week.
Step 5: Start talking about long-term goals, such as saving for college or a car, when your child is between 11 and 14. Encourage her to earn extra money by mowing the neighbor's lawn or shoveling snow off driveways.
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