Tips for teaching your kids about finance
TORONTO – Kids should start learning about finances from a young age, and how parents teach them should depend on their age, according to a senior wealth advisor.
Paul Shelestowsky of Meridian Credit Union told CTV News Channel on Sunday that preparing children early can help them face future financial challenges.
âFinances are one of the biggest stressors,â Shelestowsky said. âThe sooner children learn these concepts, the better prepared they will be to deal with stress and develop financial confidence. “
While it can be difficult to keep a child’s attention when they’re five years old or younger, Shelestowsky recommends teaching in the form of games or other types of entertainment.
This can include playing “things like coin identification games and, when you go shopping, talking about the buying process and then letting them help you find good deals,” he said. he explains.
“You want it to be engaging this age.”
Once the kids hit double digits, Shelestowsky says it’s a good time for them to learn how to save money.
âStart by taking them to the bank or the credit union and open a savings account for them,â he said. “Get them to make deposits.”
Plus, it can also be a good idea for them to learn what it’s like to acquire money for themselves, Shelestowsky said.
âThis is really when they can start to maybe make some of their own money doing housework for a stipend,â he said. “That way, they can begin to learn about the relationship between money and the value of work.”
Shelestowsky said it can help provide a foundation for children as they approach their teens, when finances start to get more complex.
When it comes to keeping a budget, Shelestowsky says it’s never too early to teach kids the concepts of income and spending.
âIt’s about understanding throughout your childhood the difference between wants and needs,â he said. “It’s a concept that people struggle with all their lives, and having a budget in place will really show kids how wants will take a back seat to needs.”