—>Let’s Talk About Kids and Money
Hey there, fellow parents and financial wizards! Today, let’s dive into the sometimes tricky world of talking to kids about money and taxes. Yes, you read that right—taxes can be fun to discuss, especially when approached the right way. As an accountant (and a parent), I’ve learned a few tricks to make these conversations engaging and educational for kids of all ages.
Why Should We Bother?
First things first: Why talk money with your kids? Well, aside from preparing them for adulthood, understanding personal finances early on sets them up for a lifetime of good habits. Learning about money management and taxes empowers kids to make informed choices, budget wisely, and appreciate the value of hard work and saving.
Talking to Little Tykes (Ages 3-6)
For the little ones, simplicity is key. Start by explaining that money is used to buy things like toys, snacks, and even trips to the zoo. Introduce the concept of saving—maybe with a piggy bank or a special jar for coins. Regarding taxes, keep it light: “Taxes help pay for things like parks and schools!”
Primary School Whiz Kids (Ages 7-10)
As kids grow, their curiosity about money naturally increases. Use everyday examples to explain taxes—like how sales tax adds a little extra to the cost of toys or ice cream. Encourage them to set savings goals for something they really want, like a video game or a pet. Teach them that paying taxes is part of being a responsible citizen, just like cleaning up their toys is part of being a responsible kid.
As they age between 10 and 11, it is important to teach them how to earn and how to spend. These tools will take them to the next level of financial literacy! When my boys were 10, we started a serious chore chart. So before we move on to Tween’s let’s take a look at the power of chore charts.
Imagine waking up on a Saturday morning to find your offspring voluntarily doing dishes without you having to channel your inner drill sergeant. Chore charts make this magic happen. It’s like a Jedi mind
trick but with fewer mind tricks and more incentives like screen time or cold, hard cash.Picture this scenario: Billy, aged 10, stands proudly before his completed chore chart, arms akimbo. With a sparkle in his eye and a smudge of ketchup on his cheek (because kids), he proclaims, “Behold, mortal
beings! I have conquered the laundry mountain!” And just like that, you’ve glimpsed a future where your child knows the value of hard work and maybe even folds socks neatly (a parent can dream).
In our house, we have magnets on the refrigerator, each with a chore and a dollar value. My boys pick the chores they want to do and put them on our chore chart. At the end of the week, I deposit their hard-earned money into their Chase Kids account. They use their Chase Kids card to buy what they want and pay for those insane video game subscriptions they “must” have!
Tween Titans (Ages 11-13)
Tweenagers are starting to grasp more complex ideas about money. Use this age to introduce concepts like income (allowance or money from chores), expenses (like snacks or hobbies), and saving for bigger goals (maybe their first smartphone!). Discuss how taxes are taken from paychecks to support community services and infrastructure. This can spark conversations about fairness and civic responsibility.
Teenage Money Masters (Ages 14-18)
Teens are almost adults and need practical financial skills. Help them understand pay stubs, deductions, and how taxes impact their earnings. Encourage them to manage their money responsibly. Discuss the importance of budgeting, saving for college or a car, and investing for their future. By now, they might even appreciate that taxes fund things like roads and emergency services.
Tips for All Ages
1. Make it relatable: Use examples from their world—like allowance, birthday money, or things they want to buy.
2. Keep it positive: Emphasize the freedom and security that comes with smart money management.
3. Lead by example: Kids often mimic their parents’ habits, so show them how you save, budget, and pay bills.
4. Use technology: There are great apps and games that teach financial literacy in a fun way—perfect for screen time that’s actually educational!
Remember, talking about money doesn’t have to be daunting. It’s an opportunity to teach life skills and foster independence. So, dive in, have fun, and watch your kids grow into savvy savers and responsible taxpayers!
Until next time, happy budgeting!