Teaching Your Kids All Things Finance with Fund$
Benefits of Teaching Your Kids about Money With Chores
You can teach them how to prioritize their spending.
You can teach them how to SAVE.
You can teach them how to BUDGET.
They develop a sense of independence and responsibility.
4 Tips to Teach Kids About Saving Money
Decorate a savings jar or piggy bank where your child can save their money.
Set a savings goal with your child, for fun items such as a toy or a game.
Have a savings challenge and track their progress on a FUN savings chart.
Set a good example by talking about your own savings goals and habits with your child. Show them how you save money and involve them in family budgeting discussions.
5 Tips to Teach Your Kids About Budgeting
Start by teaching them the difference between wants and needs.
Help them set a budget with their allowance.
Encourage them to save a portion of their allowance.
Teach them how to track their spending.
Set an example and create a family budget together.
5 Ways to Teach Kids to Invest
Teach the Basics
Introduce your child to what investing is and help them understand the concept of risk versus reward.
Use Relatable Examples
Make investing relatable to kids by using examples they can understand, such as investing in familiar companies such as McDonald's or Nike.
Invest Together
Invest a small amount of money with your child, in a low-cost index fund or stock. This can help them learn about the process of investing and see the impact of their investments over time.
Emphasize Long-Term Goals
Teach kids about the importance of investing for the long-term and how it can help them achieve all of their financial goals, such as buying a car, paying for college, or saving for retirement.
Keep it Fun
Keep investing fun and engaging for kids. This will help them stay interested and motivated to learn more about investing and their financial future. You can keep it fun through interesting children's books or playing a mock stock market game with fake money.
Saving & Investing for Your Children
Compound Interest
Thanks to the power of compound interest, if you invest $10 daily for your child starting from birth on their 18th birthday they'll have $131,686*.
How to Save & Invest For Your Child?
529 College Savings Plan
Money grows tax-free and if it used on an eligible education expense, it can be withdrawn tax-free.
Custodial Accounts (UGMA/UTMA)
Allows you to invest in stocks, options, mutual funds, bonds, CDS and fractional shares on behalf of your child.
Roth IRA
If your child earns income, contributions to a Roth IRA will grow tax-free. Withdrawals are flexible, allowing you to withdraw at any time.
What to Invest In?
Index Funds or ETFs
Diversification Tracks Returns of a Specific Market Index
Example: S&P 500
Where to Invest? (Custodial Brokerage Accounts)
Fidelity
Charles Schwab
Ally Invest
Teaching Your Kids About Money with Real Life Examples
Grocery Shopping
Going to the grocery store? Let your child tag along and show them how you compare prices, use coupons and even how you stick to your budget.
Paying a Bill?
Show your child and teach them what a bill is and why it’s important to pay it on time.
Create a Budget Together
Show your child how you would budget, whether it's for a vacation or paying for a school trip. This activity will teach your child the importance of planning and sticking to a budget.
Games
Teaching your children about money doesn’t have to be boring. Depending on your child’s age, you can:
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Get them a toy cash register or a piggy bank, and play a fun game.
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You could teach your kids these valuable lessons with board games like Monopoly or Game of Life.
Teaching Your Kids About Real Estate
Real Estate 101
Teach your kids what real estate is by showing different types of real estate: vacant land, buildings, homes. Use relatable examples such as parks, the movie theaters or the mall.
Games
Games such as Monopoly, Minecraft or The Sims are great and entertaining ways to teach your children about real estate.
Books
The book "The Berenstain Bears' Moving Day" which is a story about a family buying a new home. Discuss the characters' experiences and use the book as an opportunity to teach your kids about real estate.
Real Estate Terms
Teach your kids real estate terms, such as mortgage, equity, interest rate, and property tax, and explain what they mean.
TV Shows
Watch TV shows such as "The Property Brothers" or "Fixer Upper," and discuss the different aspects of real estate featured in each episode.
4 Fun Games To Your Kids About Finance
Monopoly: Teaches kids about money management, investing, and negotiation.
Pay Day: Teaches kids financial concepts such as paying bills and managing unexpected expenses
The Game of Life: Teaches kids financial concepts such as budgeting, savings, and investing.
The Allowance Game: Teaches kids financial concepts such as handling money, making change & more.
How To Make Your Child A Millionaire?
Saving For Your Child's Education: 529 College Savings Plan
What is the 529 Plan?
Tax advantaged savings account and if used on an eligible education expense, it can be withdrawn tax-free.
Flexibility
Money withdrawn can be used for many qualified education expenses such as tuition, fees, books, supplies, and room and board costs.
Not Just For College
You can spend up to $10,000 each year on elementary, middle, and high school tuition per beneficiary.
If you spend over $10,000 yearly, it will be subject to income tax and a 10% federal penalty tax.
What If My Child Doesn't Go to College?
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You can withdraw but it will be subject to federal income taxes and a 10% penalty tax.
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You can change the beneficiary of the 529 Plan to another family member.
