I saw this fantastic graphic on Pinterest via the President's Advisory Council and thought it was worth sharing. Once our kids turn 5 years old, they begin receiving an allowance. Money seems to be a hot topic around our house as we strive to teach our kids the importance of spending wisely and the benefits of saving.
Here are some highlights on the image:
Age 3-5 Years:
- Money is earned by working
- Different between needs and wants
Age 6-10 Years
- Spending money is all about making choices
- Saving money in an account yields an increase from interest
Age 11-13 Years:
- Save 10% of all money you receive
- A credit card is a loan and you end up paying more than the original loan because of interest
Age 14-18 Years:
- Avoid falling back on credit cards to pay for things you don't have the money for now.
- Paychecks end up being smaller than you think because we all have to pay taxes.
Over 18 Years old:
- Continue to put money into savings each month, no matter how small the amount in an effort to save 3 months' worth of living expenses for emergencies.
- Only use a credit card if you can pay off the full amount each month.