April is National Financial Literacy Month
How to Talk to Your Kids About Money 

Did you know that April is National Financial Literacy Month? Council for Economic Education (CEE) conducts a full roster of events throughout the month to shine a spotlight on the importance of economic and financial education. Let's start with talking to our children about

money. How soon is too soon to talk to your kids or grandkids about money? If they are old enough to ask for a toy or a bike, they are old enough to start learning financial lessons that will last a lifetime. The best financial lessons are part of everyday experiences. Look for opportunities to talk about money, read books aloud and play games that center around spending money wisely. Be open and honest when you discuss your financial experiences.  Here are some examples of teachable moments to help you get started.

At the bank

When you go to the bank, bring your children with you and show them how transactions work. Get the manager to explain how the bank operates, how money generates interest and how an ATM works. You can also ask for a bank tour and view the vault.

On payday

Discuss how your pay is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.

At the Market

It's easy to give clear examples of "needs" and "wants" using different kinds of foods at a grocery store.  Milk (for strong bones) is a need; soft drinks are a want.  Explain the benefits of comparison shopping, coupons and store brands.

Chores and allowances 

Assign chores and give them a monetary value.  Discuss ways to budget and divide allowances.  Encourage children to set a financial goal, such as saving for a bike, and figure out how to achieve it. 

Paying bills

Explain the many ways that bills can be paid: over the phone, cash or check, electronic check or online check draft.  Discuss how each method of bill pay takes money out of your account.  Be sure to cover late penalties, emphasizing the importance of paying bills on time.

Using credit cards
Explain that credit cards are a loan and need to be repaid.  Share how each month a credit card statement comes in the mail with a bill.  Discuss the features of different types of cards, such as ATM, debit and credit cards.

Browsing the Internet

While online, explain to your children how valuable their personal information and privacy is to you, to them and to online predators.  Discuss the risks and benefits of sharing certain information.  Then, as a family, make a list of rules for keeping personal information safe online.

Planning a vacation

Whether you are planning an outing to an amusement park or a weeklong vacation, emphasize the value of saving as a family.  Set a family savings goal that involves your children.  Figure out the cost and discuss ways everyone can help to reach the goal.