Good morning! Today, we're talking about teaching kids about money. A recent survey found that most parents want to start teaching their kids about money before they're 12 years old. Yanely Espinal is here to help us with that. She's the director of educational outreach at NextGen Personal Finance and also wrote a book called 'Mind Your Money'.
Yanely, why is it important to teach kids about money when they're young?
Yanely: 'Research shows that kids start developing financial habits as early as three years old. By age seven, these habits are mostly set. So, it's a critical window for parents to teach their kids about money.'
Yanely says that parents can start teaching their kids about money from a young age, even as young as three or four years old. They can start with simple things like putting coins in a piggy bank. As kids get older, they can start doing more complex things like going grocery shopping or doing their own banking.
Yanely: 'The key is to create new generational cycles where our parents didn't talk to us about money. I know my parents didn't because they were immigrants and there was a lot of financial shame in my home. Now, I get to create new patterns by talking to my nieces and nephews about money and lessons about saving and investing.'
