North Texas Financial Analyst Breaks Down Lesson in Financial Empowerment for Every Age

It’s never too early to talk about money with your children, according to Dewitt & Dunn Financial Services CEO Cathy Dewitt Dunn.

“A recent study found more than one in four Americans never talked about money with their parents,” Dewitt Dunn said.

Here is her breakdown of suggestions when it comes to what she calls age-appropriate information and conversations to set kids up for success as adults.

"Traditionally, talking about money is considered taboo, and some parents find the topic too stressful or complex to discuss with their children. What I've found helpful is breaking things down by age! You can start teaching simple concepts to your young children and slowly introduce new concepts as they get older," she said.

Ages 0-5: Introduce Them to Money

• At this age, the goal is to introduce kids to the idea of money.
• You can do this with play money and teach them the exchange of money.
• Play pretend at home like you're at a restaurant and your child is the server. Give your child pretend money in exchange for their excellent service. They will see it mirrored when you and your family visit a restaurant and give the waiter money for the bill.
• These little interactions seem small, but they start to lay the groundwork.

Elementary School: Teach Through Play

• This is a great time to introduce your kids to Monopoly and the Game of Life!
• Both games simulate the opportunity to invest in property and families and introduce them to concepts they may have to navigate in adulthood.
• This is also the time you may want to consider giving your children an allowance. Families can assign a dollar value for completing different tasks around the house or a flat dollar amount for good grades every month. The options are endless!
• But giving them money starts to help them visualize and conceptualize the value of a dollar.

Middle School: Explain Good Money Habits

• At this point, your child may open a lemonade stand in the summer or start babysitting or pet sitting for neighbors to earn some extra income in addition to any allowance.
• Now that your child has figured out how to earn money, it's time to teach them what to do with it.
• You can introduce the idea of evenly distributing all income they earn into three buckets: save, spend and give!
• This helps them earmark money to save up for a new pair of shoes or the latest gadget, puts money in their pocket right now for a movie with friends, and also teaches them the value of giving back to a cause they care about.
• It's a simple budget, but it helps them start to organize their money and understand that some money is off-limits.

High School: Set Up for Financial Success

• At this point, your child may get an after-school job or want to save for a car or college. You'll want to help your child open a checking and savings account with your local bank.
• Before your kids enter adulthood, introduce them to a budget.
• Budgets help track the income they earn and how much they spend. Budgets can also help track monthly savings goals. We have a teen budget worksheet on our website, dewittanddunn.com, to help you get started.
• Finally, talk with your children about debt. Explain that when used properly, credit cards can help build your credit score. But they can also hurt your credit score when mishandled. Help them navigate the student loan process and teach them how loans work.

HOW CAN PARENTS LEAD BY EXAMPLE?

• Leading by example is incredibly helpful for teaching your children these money lessons.
• Use a budget for your household and let the kids see it.
• Showcase what it looks like to manage your bills and pay them on time. Explain how it saves you money to pay your bills on time to avoid paying fees and interest.
• Resist the urge to impulse spend at the store. Let your kids see you put something down and walk away from it.
• Finally, let them see you plan and save for the future! We often work with our client's children because they see their parents working with us.