10 Essential Money Management Skills for Children

As children grow into adults, having base savings to tackle expenses like a first apartment or higher education will make the unpredictability—and the expenses that come with that unpredictability—of life a bit easier to manage.

Parents who help their children understand and use money wisely can also set them on the road to being financially secure adults. Here is a list of 10 financial skills for children to learn how to earn, save, and spend money.

Using a savings account and compounding money

Parents can open a joint account—provided they can for a minor, which depends on statutory laws—where children can access the money in the account with the parents serving as the monitor.

Children learn the value of saving when they can also practice how to spend those precious pennies on something of their choosing. Take a trip to the store, and talk about how much the items they’re interested in cost.

Avoiding impulse buying

Saving for major life events, such as college

Developing saving habits early, and with goals in mind, can make debt seem less daunting in the future. Starting a college fund is especially valuable, not just because of soaring tuition costs, but because experts find children will feel ownership in their college education.

Once your children have experienced accumulating money in their piggy banks, or adolescents begin earning money, parents can take a hand in helping them prioritize what they’ll do with those dollars.

Using a budget

Getting the best price for products

Grocery shopping with your children can be a great opportunity to teach them how to get the best value. Before you leave, clip coupons and explain that if you buy that featured item and hand coupons to the cashier, they’ll be able to save a little money for something else.

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