Where do kids learn about money? 3 Source: Themint.org, 2013
Why do kids ask parents for money? 4 Source: Themint.org, 2013
What do kids need to know? »Cash flow »Needs vs. wants »Making choices »Importance and power of saving »Credit cards »Good credit history »Earnings and taxes 5
How do we teach kids about money? »By example »Structure and guidelines »Age-appropriate goals »Accountability and consequences »Allow for mistakes 6
When should teaching about money begin? 7 President’s Advisory Council on Financial Capability is not affiliated with Great-West Life & Annuity Insurance Company, Great-West Life & Annuity Insurance Company of New York, or their affiliates and subsidiaries.
Up to age 5 Activities to reach the milestones »Need money to buy –Identify coins and their value »Earn by working –Describe jobs »Wait before you can buy –Save for a purchase »Needs vs. wants –Food is essential, toys are not 8 Source: Moneyasyougrow.org, 2014
Ages 6 to 10 Activities to reach the milestones »Make choices –Include child in small financial decision »Compare prices –Describe why you choose one item over another »Online safety –Set rules for not disclosing personal data »Protect money –Set up a bank account 9 Source: Moneyasyougrow.org, 2014
Ages 11 to 15 Activities to reach the milestones »Save a specific amount –Deposit in a savings account »Online safety –Never answer emails from unknown people »Compound interest makes money grow –Describe how savings account interest works »Credit card –Review offers that come in the mail 10 Source: Moneyasyougrow.org, 2014
Ages 16 to 18 Activities to reach the milestones 11 Source: Moneyasyougrow.org, 2014 »Compare colleges –Research scholarships, etc. »Avoid using credit cards –Maintain a spending and saving plan »Paycheck deductions –Consider direct deposit »Start an IRA –Provides investing knowledge
Ages 18+ Activities to reach the milestones »Credit cards –Look for low interest rate and no fee »Health insurance –Encourage comparison shopping »Emergency fund –Three to six months of expenses »Investing expenses –Explore fund management and other fees 13 Diversification does not ensure a profit and does not protect against loss in declining markets. Great-West Financial ® is not responsible for, nor does it endorse the content contained in, the additional websites provided. Source: Moneyasyougrow.org, 2014
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