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Teaching kids about money can feel like a daunting task. Pennsylvania schools don’t have many state requirements for teaching financial literacy, receiving an F grade from Champlain College’s 2015 National Report Card. This means it’s especially important for parents to take an active role in their child’s financial education. But how do you keep it age-appropriate and leave a lasting impact without causing stress or boredom? Luckily there are a vast amount of resources and ideas available to parents for free on the internet, community organizations, and even your local credit union.

Talk about Money

This sounds easy, but many parents have a hard time getting started. Look for conversation starters or teachable moments to have frequent, but short conversations about money. Be open about how you budget for the month, or ask your child to reflect on their purchases. As soon as they are able to verbalize that they want something, it’s time to start engaging them in conversation about wants, needs, and financial decisions.

Keep it Age Appropriate

Here are a few ideas for different ages to try:Make sure to cater the activities and lessons to your child’s age group. Toddlers and teenagers will have a very different understanding of money. The JumpStart Coalition offers a handbook that specifically covers the national standards various age groups should meet before they graduate high school.

Under 4

• Give them a counting toy to practice basic adding and subtracting.
• Buy them their first piggy bank. Use this tool to practice delayed gratification. If they want a specific toy, they can’t have it until they put some change into their piggy bank at home.

5 to 7

Bring them to your financial institution and open up their very own kid’s account. Many of these accounts will provide savings passbooks that they can use to keep track of the deposits and withdrawals.

8 to 12

Start a weekly allowance to give your child the opportunity to manage their own money. Start small, and increase the amount as they grow older and mature. Have frequent talks about how their using their money, how they’ve earned the allowance, and what short-term and long-term goals they’ve created.

13 and up

• Help them apply for their first debit card with a checking account. This will allow them to practice writing checks, keeping track of their spending, making withdrawals, and experience the difference between a card and cash.
• Whether or not your teenager has a job, involve them in the tax return process. Show them how you complete your tax return, whether it’s at a physical office or using online software.
• When it’s time to visit colleges, make it a point to discuss the different financial aid options available at each of their choices. Have them assist you in filling out the FASFA, and talk to them about how student loans will affect them down the road.

Tips from the Experts: Don’t only make deposits into your child’s savings account! Let them pick an item they want to save for, and allow them to withdrawal money from their account in order to pay for it. Seeing the results of their efforts will keep them excited about saving.

Make Finances Fun

There are a plethora of board games, mobile apps, books, and online games that won’t feel like school to your child. Think of it as subliminal learning! These games will be fun enough to keep your child engaged and educational enough to impart valuable money lessons.

• Board Games – Monopoly or The Game of Life
• Mobile Apps – Star Banks Adventure
• Books – Check out Amazon’s best seller list in the kid’s money and saving category
• Websites – Practical Money Skills or the Dollar Dog Clubhouse

Important Items to Remember

Regardless of what methods you use to teach kids about money, keep it fun, keep it consistent, and make it relevant to their life. Don’t expect perfection from your child. They won’t always make the right choice with their money. Instead of a lecture, let it be a teachable moment so your child doesn’t make the same mistake in the future.