WASHINGTON, D.C. (7News) — April is Financial Literacy Month and experts are expressing the importance of teaching your kids about money starting at a young age.
“In my opinion, you should start as early as possible. If your kids are maybe 2- 3 -4 years old, disinfect some coins and show them how to sort them by color first, then by value. And as they get older, you can increase the complexity of those ideas,” Trae Bodge, smart money expert, told 7News.
Bodge said the best thing you can do is give them their own money to spend.
“When they’re very young, you can give them maybe 50 cents for the little toy machine at the grocery store. But then it’s money that they may earn from allowance to chores at home, kids will use their money much less freely than they’ll use your money,” she explained.
“Kids don’t understand where money comes from. And they don’t understand because we haven’t told them,” Bodge added. “So if they see you working, and then you take some of that money, you say, Okay, I’m taking the money that I earned, or going to the store, we’re shopping, we’re spending, they’re watching you transact, they will understand that money has value and that where it comes from, and so they’ll ask you less about those pricey things that they want.”
Bodge said it’s also important to have transparency about money. If you’re having financial hardships, explain that to your kids.
It’s good to set expectations. This approach can be applied to lots of things, whether it’s a pricy pair of sneakers, a fancy trip, or an expensive college.
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