Financial literacy may seem like a complex curriculum for a five-year-old. Despite the complexities of modern finances, it’s never too early to start teaching children about the importance of money management. Responsible spending and saving habits can — and should — be instilled in children at a young age. After all, finances are going to be an important part of their life into adulthood.
The Consumer Financial Protection Bureau suggests teaching and practicing financial fundamentals during early childhood focused on earning, saving, planning and shopping.
Incorporate games and activities like shopping and sorting money to practice these financial fundamentals in a fun and engaging way. Take them for a trip to your local bank branch to talk to a teller and even open up their very own savings account.
As they get older, children will be exposed to a variety of financial possibilities and potential pitfalls like overspending and credit card debt. Instilling the value of earning, saving, budgeting and making purchasing decisions will help ensure you’re setting your child up for their best financial future.