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7 Things To Teach Your Children About Money

Money Lessons for Kids
Raise money-smart kids from an early age

Financial expertise is one of life’s most important skills, yet it isn’t taught in schools. If you have children, here are seven lessons to help them get off to a solid financial start.

Why is it that one of the most important life skills people need—financial expertise—isn’t taught in schools? Whatever the reason, if you have children it’s up to you to give them the money management skills that will serve them the rest of their lives.

But because you probably didn’t have that when you were growing up, you may not know where to begin. So Billshark would like to offer the following suggestions to help your kids get off to a solid financial start in life.

1 Start Young

As soon as they’re old enough to know not to eat coins, use them to teach counting skills. Show how many pennies make up a nickel, and so on. Later you can move on to addition and subtraction, showing how quickly coins can add up. Not to mention how quickly they disappear when you buy something with them. The idea is to get them familiar at an early age with the concepts of accumulating, saving, and spending.

2 Expand the Lessons

When they’re old enough to have grasped basic concepts about money, reinforce them at every opportunity. Play games like Monopoly, take them shopping with you and show them that the things you buy at the store cost money. And that the money in your wallet isn’t unlimited. Teach them how you must make choices based on the money you have.

3 Give an Allowance

Once they’ve grasped the concept of how money works, give them an allowance. Explain what their money is to be used for, and detail the chores they’re expected to perform in return. Also, explain that this is what they’ll encounter when they’re old enough to have a paying job.

4 Introduce Budgeting

Once they have their own money in hand is the time to teach them the concept of budgeting. They have X-number of dollars and Y-number of things they want to buy with it. Show them that when the dollars run out, they can’t buy anything else. Have a conversation about the differences between wants and needs.

5 Teach Saving

Piggy-back a lesson in saving onto the concept of budgeting. If they want to buy more than they can afford, they can save up for it. Or show them that they can find a way to earn extra money with a child-sized side gig, like pulling weeds, raking leaves, cleaning out cabinets, or whatever isn’t on their usual chore list. Offer them age-appropriate savings methods, from a piggy bank when they’re small to a savings account at the bank later on.

6 Explain Debt

Show, don’t tell is a good way to start this lesson. If they want to buy something but don’t have the money for it, offer to lend it to them. Tell them you’ll give them the $100, but they’ll owe you $125 back, to be paid in weekly installments. Tell them what the penalty will be if they don’t pay you back every week on time. And explain the difference between smart reasons to go into debt (to buy a home, to finance a college education) and dumb reasons (to buy something like a car or a gadget that will lose value over time).

7 Introduce Sound Investing

When they’re old enough to understand the concept, teach them about the miracle of compound interest. Explain that if they start investing $400 a month at age 25, assuming a seven percent annual investment return, they’ll have over $1 million by age 65. Teach them about the different kinds of investment vehicles, and the pros and cons of each.

If you don’t fully understand these concepts yourself, now is a great time to learn. Check out the National Endowment for Financial Education (nefe.org) and the Consumer Financial Protection Bureau for excellent resources on how to teach yourself and your child about money.

Giving your child a solid foundation about personal finance is crucial to helping them toward the path of financial independence. It will be time well spent.

If you don’t have the time or the expertise to negotiate with your various providers over your bills, let the professional bill negotiators at Billshark do it for you. It costs you nothing to let us try to reduce your monthly cable, internet, and phone bills. So what have you got to lose? Contact us today and see how much we can save you every month.

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Frequently Asked Questions

When should I start teaching my child about money?

Start young. As soon as children are old enough to know not to eat coins, you can use them to teach counting skills, such as how many pennies make up a nickel. Later you can move on to addition and subtraction, showing how quickly coins add up and how fast they disappear when you buy something. The goal is to get them familiar at an early age with the concepts of accumulating, saving, and spending.

How can I teach my child about budgeting?

Once children have their own money in hand, teach them budgeting. They have a set number of dollars and a number of things they want to buy with it. Show them that when the dollars run out, they can’t buy anything else. Use the moment to have a conversation about the differences between wants and needs, so they learn to make choices based on the money they actually have.

How can I explain debt to my kids?

Show, don’t tell. If your child wants something but doesn’t have the money, offer to lend it to them. For example, give them $100 but have them owe $125 back in weekly installments, with a penalty for late payment. Explain the difference between smart reasons to go into debt, like buying a home or financing college, and dumb reasons, like buying a car or gadget that will lose value over time.

How do I introduce investing to my children?

When they’re old enough to understand the concept, teach them about the miracle of compound interest. Explain that if they start investing $400 a month at age 25, assuming a seven percent annual investment return, they’ll have over $1 million by age 65. Teach them about the different kinds of investment vehicles and the pros and cons of each so they can make informed choices.

Where can I find resources to teach my child about money?

If you don’t fully understand these concepts yourself, now is a great time to learn. The article recommends the National Endowment for Financial Education (nefe.org) and the Consumer Financial Protection Bureau as excellent resources on how to teach yourself and your child about money. Giving your child a solid foundation in personal finance is crucial to their path toward financial independence.

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7 Things To Teach Your Children About Money is a Billshark page. It can help you with your bills and your choices, and it can show you how to save.

Teach your children about money with 7 simple lessons: counting, allowances, budgeting, saving, explaining debt, and investing.

Use this page to learn about Billshark. Then go to the part of the site that fits what you need. Small steps add up. You can save a lot over time.

We share this page to help you make sense of your monthly bills, your choices, and what to do next. Keep this page handy. Ask us if you get stuck.

This page links you to more help from Billshark. Use it when you want more detail or a clear next step. You can save a lot over time.

Got a question about a bill you pay each month? This page can help you find the best answer. Read on to learn more. Small steps add up.

Read each part of this page at your own pace. If you need more help, go on to a guide on your topic. It is free to read. Keep this page handy. Ask us if you get stuck.

We put facts and tips in one place. This makes it easy to learn about the bills you pay at home. We are here to help. It only takes a few minutes.

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Our goal is to help you spot the bills you pay each month. We also share smart ways to keep them low. Ask us if you get stuck. Read on to learn more.

Come back to this page when you have a new question. It will still be here to help with bills and savings. You are in the right place. It is free to read.

We link the small choices you make each day to the big picture. That means your budget and what you spend at home. We make it easy for you.

Each part of this page helps you see what you need. It may be help with a plan, your account, or a good read. Read on to learn more. Small steps add up.

Use what you learn here to plan your questions. Look at your choices, then take the next step when you are ready. It is free to read. Keep this page handy.

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Good facts help you see why a bill went up. They also show you what to check before you call or reply. Keep this page handy. Ask us if you get stuck.

This page puts the key facts in one place. It can help you talk with a company about your bills and how to save. It only takes a few minutes. You are in the right place.

Our other pages explain the words you see on a bill. They also help you weigh the pros and cons of each plan. You can save a lot over time. We make it easy for you.

Our tips focus on real choices you can make. Start with the basics, then read a more detailed guide if you need one. Ask us if you get stuck. Read on to learn more.

This page is one of many that we share. Together they cover home costs, the firms you pay, and how to get help. You are in the right place. It is free to read.

Take your time and read this page first. It helps you see your choices and find out what to read next. We make it easy for you. We are here to help. It only takes a few minutes.

We set this page up so you can compare and keep reading. You will not need to hunt for what you want. Read on to learn more. Small steps add up. You can save a lot over time.

Monthly bills come with rules, terms, and fine print. This page helps you find the parts that count for you. It is free to read. Keep this page handy. Ask us if you get stuck.

Our pages give you a clear view of what you pay each month. You can then pick the plan or guide you want. We are here to help. It only takes a few minutes.

Some of our guides cover the basics. Others go into detail on one company or one type of bill. Small steps add up. You can save a lot over time. We make it easy for you.

It pays to read first and act later. This page links you to the next guide if you want to learn more. Keep this page handy. Ask us if you get stuck.

We share guides that help you make sense of your bills. They show your choices and the best next step. It only takes a few minutes. You are in the right place.

Want more detail on a bill, a plan, or your account? Check this page against the links we share here. You can save a lot over time. We make it easy for you.

We group our pages by topic to keep things simple. This helps you stay on track as you read about your costs. Ask us if you get stuck. Read on to learn more.

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This page is part of our help library. It gives you clear facts and links so you can keep on reading. We make it easy for you. We are here to help.

Your needs can change, so come back any time. Our other pages can help you look into a new cost or plan. Read on to learn more. Small steps add up. You can save a lot over time.

We laid out this page to help you get the facts and compare them. You can then choose your next step with ease. It is free to read. Keep this page handy.

Financial expertise is one of life’s most important skills, yet it isn’t taught in schools.

Why is it that one of the most important life skills people need—financial expertise—isn’t taught in schools?.

But because you probably didn’t have that when you were growing up, you may not know where to begin.

As soon as they’re old enough to know not to eat coins, use them to teach counting skills.

When they’re old enough to have grasped basic concepts about money, reinforce them at every opportunity.

Once they’ve grasped the concept of how money works, give them an allowance.

Once they have their own money in hand is the time to teach them the concept of budgeting.

Piggy-back a lesson in saving onto the concept of budgeting.

Show, don’t tell is a good way to start this lesson.

When they’re old enough to understand the concept, teach them about the miracle of compound interest.

If you don’t fully understand these concepts yourself, now is a great time to learn.

Giving your child a solid foundation about personal finance is crucial to helping them toward the path of financial independence.

If you don’t have the time or the expertise to negotiate with your various providers over your bills, let the professional bill negotiators at Billshark do it for you.

Start young.

Once children have their own money in hand, teach them budgeting.

Show, don’t tell.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

2 Expand the Lessons.

3 Give an Allowance.

4 Introduce Budgeting.

7 Introduce Sound Investing.

Frequently Asked Questions.

When should I start teaching my child about money?.

How can I teach my child about budgeting?.

How can I explain debt to my kids?.

How do I introduce investing to my children?.

Where can I find resources to teach my child about money?.

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