Kids and Money Date

What’s a parent to do? 2

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 s 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 Source: Moneyasyougrow.org, 2014 »Credit cards »Health insurance »Emergency fund »Investing expenses

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

Allowance »Why? »Start at what age? 14

Allowance »How much? »How often? 15 Some general guidelines suggest the following amounts each week: Ages 5-9: $5 Ages 10-11: $10 Ages 12-13:$15 Age 14: $18

Allowance guidelines for parents »Set expectations and guidelines »Be consistent »Don’t withhold for mistakes »Encourage saving »Reinforce needs and wants »Provide safe saving 16

Disclosures Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker dealers. GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company. Great-West Financial ® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York (GWL&A of NY), Home Office: White Plains, NY; and their subsidiaries and affiliates. The trademarks, logos, service marks, and design elements used are owned by GWL&A. ©2014 Great-West Life & Annuity Insurance Company. All rights reserved. Form# S1008 (05/2014) PT Unless otherwise noted: Not a Deposit | Not FDIC Insured | Not Bank Guaranteed | Funds May Lose Value | Not Insured by Any Federal Government Agency

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