Children ages 3 to 5 are usually too young to understand abstract financial concepts. Still, they are building a foundation that can serve them well in the future.
Here are some milestones you should look for and activities that can help your children reach them.
1️⃣ You need to make choices about how to spend your money.
✅ Include your children in some of your small decisions. For example, at the grocery store, explain why you pick one item over another.
✅ Give your children a few dollars and let them choose which fruit to buy.
✅ When shopping with your children, ask yourself aloud: Do I need this item? Can I borrow it? Would it cost less somewhere else?
2️⃣ It’s good to shop around and compare prices before you buy.
✅ With your child, compare prices for a particular toy at various online or brick-and-mortar stores.
✅ Use coupons and discount cards, and show your child how much you are saving.
✅ Consider allowing her to keep part of the savings, if she helps clip or print out coupons.
3️⃣ Putting your money in a savings account will protect it and pay you interest.
✅ Visit a nearby federally insured bank or credit union with your child.
✅ Ask about the interest rate on a savings account.
✅ Discuss with your child how money in savings accounts is protected by federal insurance.
✅ If the bank goes out of business, she will get her money back.
✅ Open a savings account for your child.
