Teaching Your Kids About Finances

What Age to Start Talking Money with Your Children

It’s never too early to start teaching your children about money. We’re not talking stocks and investments though – we’re talking about developing healthy savings habits at every age.

Ages 3-5

• Include kids in the grocery trip to help them understand this process. To make it more tangible, use cash.
• Give your children a dollar (or a couple) to spend; let them experience handing over this money in order to buy an item.
• Open a Wescom College Saver Account Certificate for your little one. You can continue to make deposits and earn dividends until they’re 18 years old!

Ages 6-10

• Have them set a goal, such as buying an inexpensive toy. Use a savings jar to provide a visual and increase their excitement level as they see the amount of money “grow.”
• Take them to a Wescom branch to open a Wescom PiggyBankers Account so they can see the benefits of saving money there rather than just at home.
• Give an allowance or provide chores for them to earn money.
• Start getting them involved in decision-making while shopping: Is this something we need or want? Do you think we can buy this cheaper elsewhere?

Ages 11-14

• Introduce the concept of a budget and open a Wescom Fortune Finders Account.
• Have your children help you create a budget and list for the grocery store or back-to-school shopping. As you shop, ask for feedback and suggestions on ways you can keep on budget. Have your child look at the labels and compare the bulk amount percent. Have them compare the cost differences between a brand name and a generic brand of the same item—to see which one is better.

Ages 15-17

• Have discussions about different jobs they might be interested in and include talks about responsibilities and income. Explain about deductions, such as taxes, Social Security, and insurance premiums.
• If your child doesn’t have this already, consider opening up a Wescom GenEdge Savings Account or Wescom Checking Account—or both.
• Have discussions on how to pay for college: parent contributions, after-school jobs, financial aid, scholarships, and grants. Have your children research different career paths (educational requirements and salary prospects) as well as costs for different universities. Then have them review how much student loan debt could affect their lifestyles after graduation.