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Teaching Financial Skills to Young Children

In today’s economic environment, it is critical to understand how money works and how to make it work for you. Young children need to learn, at an early age, the financial skills they will need later in life.

Examine your own attitudes about money. Children learn more from what they see you do than from what you tell them. You have to communicate openly with young kids about money, in simple terms they can comprehend.

Involve your children in financial planning. A savings account in his or her own name will help them understand the basic benefits of saving money and watching it grow. Give your child an allowance and let him or her be in charge of spending it. Provide extra income opportunities. Help them learn that money is something you earn, not something you are entitled to. Taking these steps will go a long way in setting a foundation for younger kids.

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