Experts say it’s never too soon to start teaching your kids about money, especially since they observe you dealing with it before they can talk. “Money doesn’t go on trees, nor does it spout out of the ATM,” said Terry Savage, also known as “The Money Lady.”Savage is a syndicated columnist and author of “The Savage Truth on Money, Markets and the Economy.” She cautioned it’s important for kids, even before school age, to understand where money comes from. “This is a product of mom and dad working and working hard to buy things that are important for the family,” Savage said. “You have to make choices about what you can buy, what you can afford to buy.”Usually, in elementary school, kids are interested in having their own money. And with the right education, Savage said a debit card might be a good idea come middle school. But make sure it’s one parents can control.”It’s not like you want to strike fear into the heart of your child, you want to strike appreciation. So that ‘a,’ they don’t spend unwisely and ‘b,’ they’ll be motivated to make their own money one day,” she said. Savage added that there are all sorts of apps — like Greenlight — that make it easy for parents to track their kids’ spending and saving, send them money for chores or their allowance, and even teach them the basics of investing. As for credit, she advised that kids generally need to be 18 before getting their own credit card. And it’s important for parents to stay involved to make sure they use credit responsibly. Parents can also consider freezing their child’s credit report so scammers can’t take advantage.
BOSTON —
Experts say it’s never too soon to start teaching your kids about money, especially since they observe you dealing with it before they can talk.
“Money doesn’t go on trees, nor does it spout out of the ATM,” said Terry Savage, also known as “The Money Lady.”
Savage is a syndicated columnist and author of “The Savage Truth on Money, Markets and the Economy.” She cautioned it’s important for kids, even before school age, to understand where money comes from.
“This is a product of mom and dad working and working hard to buy things that are important for the family,” Savage said. “You have to make choices about what you can buy, what you can afford to buy.”
Usually, in elementary school, kids are interested in having their own money. And with the right education, Savage said a debit card might be a good idea come middle school. But make sure it’s one parents can control.
“It’s not like you want to strike fear into the heart of your child, you want to strike appreciation. So that ‘a,’ they don’t spend unwisely and ‘b,’ they’ll be motivated to make their own money one day,” she said.
Savage added that there are all sorts of apps — like Greenlight — that make it easy for parents to track their kids’ spending and saving, send them money for chores or their allowance, and even teach them the basics of investing.
As for credit, she advised that kids generally need to be 18 before getting their own credit card. And it’s important for parents to stay involved to make sure they use credit responsibly. Parents can also consider freezing their child’s credit report so scammers can’t take advantage.
