Although they might be instructed in some basics, kids won't learn in school everything they need to know about money. These lessons are important too so make sure you take the time to review them with your kids!
Lesson 1: Money doesn't grow on trees.
Little kids are often the recipient of "magic money" like funds from the tooth fairy. By the time they're 10 years old, kids should understand that we exchange our work skills (or chores) to earn money – and that requires time, patience and effort.
Lesson 2: Saving money is as important as earning money.
It's so easy in this day and age to get caught up in impulse buys. Since money doesn't grow in trees (lesson 1!) because we only earn a finite amount, saving money is equally important. Make sure your kids have a piggy bank or bank account in which to deposit savings.
Lesson 3: Budgets are your friend, not your enemy.
In my opinion, the word "budget" has been vilified enough. Budgets, prepared mindfully, are your best financial ally. Using their allowance and wish lists to guide them, kids can learn how to prepare a budget and stick to it.
Lesson 4: Always balance your bank account!
Even if they don't have a real bank account, by age 10 they should be able to keep track of the money they earn, save and spend. Buy them a ledger book or show them how to keep track on a computer spreadsheet or smartphone app.
Lesson 5: Not every celebration needs to be attached to money.
This is a lesson I wish I had learned in my childhood. Sometimes, instead of going out for a celebratory dinner, or buying a gift, we can teach kids that you can share amazing times together and make memories for free (or close to it) – and put money you would have spent into savings instead.
Lesson 6: When you set a savings goal, don't forget a timeline.
Sometimes it happens that we don't have the cash to get what we want right away. That's when dusting off the piggy bank and setting a deadline with a plan work so well.
Lesson 7: Learn the difference between wants and needs.
This is a huge one. By this age, they need to really understand the difference between wanting a video game and needing new eyeglasses. And if after your conversation they still want it, they can set a savings goal to buy it.
Lesson 8: Always pay bills on time.
When bills arrive on the mail, take a few minutes to sit down and share with the kids the basics of what the bill is for, how often it comes, and why you should always pay on time.
Lesson 9: Pets aren't free!
By 10, kids are at an age when they can understand that caring for a pet costs money. Give them a budget when you go to the store to buy pet food or supplies. Show them how you set aside funds monthly for emergency vet bills. Let them learn that having a pet is a financial responsibility as well as an emotional investment and time commitment.
Lesson 10: It's GOOD to talk about money.
Most of all, teach them that talking about money is not a scary thing. It's a normal part of everyday life and open communication about finances is important.
Yoly Mason, a blogger living in Orlando, Florida, wants to live in a world where Latinas can enjoy an abundant life with a small budget and where being in debt is as out of style as the rotary phone.
