A lot of youth today dream of becoming a millionaire YouTube star. Never say never, right? For most youth, however, becoming a teen millionaire is just that, a dream. However, it’s never too early to begin teaching youth about the importance of finances and savings. Your child’s financial literacy skills will lay the foundation for their financial success for the rest of their life. For kids, finance education begins at home.
Financial advisors with Sagevest provide examples of financial topics for different ages;
Ages 3-4: Promote financial learning through play. Explain that money is earned by working and that it’s used to buy things. Teach the difference between nickels, dimes, quarters, and various bills. Avoid using a credit card as much as possible when shopping with your kids.
Ages 5-7: Start an allowance and money basics. Practice counting and exchanging money when you go to the store and at home during play. Try to use real money rather than credit cards when shopping with your kids.
Ages 8-10: Open a bank account and kid’s savings. Consider small jobs to promote the value of earning money. Require your kids to assume greater financial responsibilities. Focus on saving for longer-term goals. It’s time to open a custodial banking account with your child. Make sure you remind your kids that money is earned by working.
Ages 11-13: Develop budgeting skills. Instill the value of working with small jobs near home. Require your kids to begin planning for longer-term spending and saving goals. Share the importance of giving to others. Work with your child to broaden bank management skills.
Ages 14-16: Balancing financial wants and peer pressure. Balance needs, wants, and values as teens encounter significant peer pressure. Manage greater financial decisions, such as annual clothing purchases. Learn to plan, save and budget from personal earnings and allowance. Engage in discussions about college, including financial expectations.
Ages 17-18: Help your teen prepare for college or life after high school. Encourage them to manage more personal expenses to prepare as an upcoming graduate. Work part-time to build self-esteem, confidence, and experience. Balance social and college pressures within financial realities.
TNStars 529 Program
If college is the path your child has decided to take, then a savings plan will help you! TNStars 529 is a college savings program that allows parents and guardians to open an account with just $25. A 529 plan is named after Section 529 of the Internal Revenue Service Code that created these types of savings plans. Section 529 plans are open to anyone, regardless of income level, and earnings are not subject to federal income tax when used for qualified higher education expenses. Just click here to open an account today!