How to talk to your kids about finance.

Ages 0-5:

1. Introduce Basic Concepts through Play:
   

   • Use simple games and play activities to introduce the concept of money. Play "store" or use toy money to make it fun.

   • Incorporate the idea of saving by using a piggy bank. Explain that putting money in the piggy bank is like saving for the future.

1. Storytelling for Basic Understanding:
   

   • Share simple stories or picture books that convey basic values about sharing, saving, and spending wisely.

   • Introduce the idea that money is earned through work, even if it's just a small task.

1. Establish the Value of Planning:
   

   • Begin introducing the idea of planning for the future. For example, discuss planning for a special event or saving for a favorite toy.

Ages 5-10:

1. Teach Money Basics:
   

   • Introduce different denominations of currency and basic arithmetic involved in money transactions.

   • Involve them in simple budgeting for activities they enjoy, such as saving for a toy or outing.

1. Introduce the Concept of Earning:
   

   • Discuss how people earn money through jobs and emphasize the connection between work and income.

   • Consider giving them small chores for which they can earn an allowance.

1. Basic Life Insurance Concept:
   

   • Explain the concept of life insurance using simple language. Use relatable examples like protecting a favorite toy or pet.

Ages 10-15:

1. Expand on Earning and Saving:
   

   • Discuss different ways people earn money and the importance of saving for both short-term and long-term goals.

   • Consider opening a savings account for them and involve them in tracking their balances.

1. Introduce Basic Investment Concepts:
   

   • Explain the idea of investing and how it can make money grow over time. Use simple examples like compound interest.

1. Life Insurance as a Protective Measure:
   

   • Discuss life insurance more explicitly. Emphasize its role in providing financial protection for loved ones in case of unexpected events.

   • Address the idea that life insurance is a responsible decision and a way to show love and care for the family.

Ages 15-20:

1. Deepen Understanding of Financial Independence:
   

   • Discuss more complex financial concepts like credit, debt, and the importance of a good credit score.

   • Encourage part-time work or internships to teach them about workplace dynamics.

1. Explore Different Investment Vehicles:
   

   • Introduce various investment options such as stocks, bonds, and mutual funds. Discuss the associated risks and rewards.

   • Encourage them to start investing or saving for longer-term goals like college or homeownership.

1. Life Insurance for Future Planning:
   

   • Discuss the role of life insurance in comprehensive financial planning, including protection and potential cash value accumulation.

   • Emphasize the importance of reassessing life insurance needs as they experience significant life events, such as marriage or having children.