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Teaching children about money, finances

Money management tips for parents by the FDIC

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PEMBROKE PARK, Fla. – From preschool to college, here are some tips for teaching your kids about money:

Whether you are 4 or 24, knowing how to properly manage your money is an important skill to have.

Here are money management tips offered by the Federal Deposit Insurance Corporation (FDIC):

Pre-K to Grade 2: "Earning and Saving"

·         Parents should use bills and coins in front of their children when making purchases every once in a while to teach children about the different values.

·         To reinforce the concept of bills and coins, imaginary games where children pretend to be at a store or restaurant are helpful

·         Have two separate piggy banks, one for money to save and one for money to spend, to learn saving and spending work in tandem

Grades 3-5: "Creation of a Comparison Shopper"

·         Children at this age should be taught how to think before they buy; know when they need something rather than want something.

·         Help your child create a budget

·         Show your child bank statements to see how money decreases as you spend

Grades 6-8: "Tips for the Teen Years"

·         Teach your teen if they work more, they can earn more. Encourage them to become camp counselors, or obtain a part-time job.

·         Teach them to save for long-term goals, such as college or a car

·         Teach your teen about fraud; with social media and online banking, teaching about privacy on the internet at this stage is crucial

Grades 9-12: "Understanding large purchases, interest, credit"

·         Help them realize career goals

·         Explain financial responsibilities of large purchases, such as a car, which come with insurance, maintenance and fuel costs among others

·         Explain benefits and risks of where your child places their money, whether it's safely in a bank, or in a stock.

College Students: "Money Management"

·         How to choose a bank, comparison shop, hidden fees

·         How to use credit cards responsibly, impacts of interest 

·         Student Loans: research, compare rates

The FDIC says it is never too early or late to incorporate financial concepts into a child's life. In fact, the FDIC encourages families to partake in regular conversation about money-related topics so you can be more confident that your child will grow up to be financially responsible.

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