It’s never too soon to start talking to your kids about money.
“Let’s just take a look at how many people are broke right now, how many people are filing for bankruptcy,” said Mike Weinstein with KTAR’s It’s Business Time. “I’m in the real estate industry so I see this all the time, where people can’t qualify for a home because they didn’t know how to manage their money.”
Kids learn a lot of how they handle money from their parents, he said. For his family, Weinstein said it started early on one day while shopping at the store.
“The moment that they start asking me to buy them something shows me that they understand the concept of money,” he said. “[And] that it takes money to acquire things that is the time you start talking to your kids about money.”
Parents can do very simple things like give kids chores and pay them an allowance.
“I love the allowance principle because it teaches them that you work,” he said. “And if you work you get paid. If you don’t work, or you don’t complete your chores, you don’t get paid.”
Parents can also teach kids about saving by separating the allowance into jars labeled as ‘savings’ and ‘spending.’