The world runs on money, a concept that most kids learn at home. So what’s the right age to start teaching it?
We did some digging to find out when parents should start talking finances with their kids.
A new survey by Capital Group says four out of 10 millennial parents think you should teach your kids about finances at 12 or even younger.
That number is nearly cut in half for baby boomer parents, who didn’t feel the need ot teach their children about money matters until their teenage years.
Edward Jones Financial Advisor Cody Kilgore says, “I don’t think there’s an exact age that is a perfect age. I think there are lessons you can teach your kids as early as five.”
The Hiatts have already started teaching their three-year-old daughter about money.
Father Eric Hiatt adds, “We have a bunch of farm animals, chickens and everything like that. So she takes care of them, sells the eggs and uses that as her own money to buy her own stuff.”
Kilgore adds that learning the paperwork like filing taxes is important, but simply understanding the value of money is most important for today’s kids.
The financial advisor explains, “The high debt society we live in today, I think people are losing track of what’s the actual cost of money. Everybody’s so used to having these massive loans that it’s kind of become a comfort thing. Where the generation before us, even a mortgage they tried to get rid of right away.”
Kilgore says that 12 is a good benchmark age to begin talking systematic investment.
He adds, “If you’re going to be making decisions for the rest of your life at 18, you should probably learn how to make the right decision years before you turn 18, instead of trying to have people teach you in the last little sprint.”
Bismarck parents of all ages tend to agree.
Bismarck parent Sue Boyd explains, “If parents start teaching their kids in 5th and 6th grade when they really understand the concept of money, and getting that physical stuff in their hand; and maybe even younger in today’s world.”
Kilgore says once kids are introduced to the value of money, then it should be taught every year like a science.
The consensus from a few millennial parents we spoke to today, suggests five-years-old is the time to start talking money.