Financial education should begin far before the 18, when you may get your first credit card. As early as preschool, children establish lasting money habits very early. According to three financial experts, Billy Crafton gives suggestions on how to get started educating your children about money.
- Early years of life (ages 3-5)
Young children who are only learning their numbers get money via play and observation in their immediate environment. They begin to notice financial activities and realize that a credit card is something their parents swipe at the register and that money is necessary to make purchases.
From an early age, children may grasp that money can get used to performing four fundamental tasks. It gets yours to spend, save, invest or give away. The CFPB states that children in the early childhood stage get patience, decision-making control, and attention. These life skills will come in handy later on when it comes to managing their cash. If every child could grasp their financial alternatives from a young age, they might make different decisions 15 years from now,” says Billy Crafton from San Diego.
- Middle Kidnapping (ages 6-12)
Besides storytelling, it may provide children the chance to practice their life skills, such as counting, planning, and conserving their money. The CFPB reports on the way children of this age group plan, budget, and rely on their inner direction when making decisions. They also acquire the capacity to achieve consistent goals and achieve long-term goals. However, at this age, their friends and community start having an impact on their life. Thus you can see that their material properties compare more often than when they are younger with their peers.
- Adolescent and young adult (ages 13-21)
Teenagers can begin making financial decisions on their own and preparing for their first credit card at the age of 18. However, before they do, you should assist them in developing critical thinking abilities to make wise financial judgments.
According to the Consumer Financial Protection Bureau, teens get developmentally equipped to match their spending with their beliefs. They mature into adults. They should have a greater understanding of who they are and what they care about in life. They are also beginning to consider the future while making more major life decisions. When you’re planning trips, buying vehicles, or going to college, you’ll need to have more in-depth talks. As your adolescent begins to consider the future, there will be more possibilities to do so. There is no ideal age to begin educating your child about credit. But according to Billy Crafton from San Diego, if your children asking you questions about money, it is appropriate to start early. It implies that parents should search for early indicators that their kid is interested in your spending patterns. Talk to them about all of the functions of money, including those they don’t see, and understand how to help them practice money habits in developmentally appropriate ways. While you’re at it, you can improve your financial literacy by studying how credit cards operate and understanding common credit card jargon.
Billy Crafton San Diego Financial Advisor 