MIAMI (CBSMiami) – A survey from the investment management firm T. Rowe Price found that 47 percent of parents spoke to their kids about money at least once a week last year. That’s up from 35 percent in 2017.
Second-grade student Gavin upgraded his piggy bank to a new Sonic the Hedgehog wallet and his mom is helping him better understand what it means to save money. Gavin is seven years old. That’s the age when money habits start to form, according to CBS News Business Analyst Jill Schlesinger.
“You also want to give them the concept of free versus what something costs, right? It’s free to go play with your friend, it costs money to go buy a toy,” she says.
Schlesinger also suggests parents who give an allowance separate it from chores.
“Your kids should just do their chores, they’re part of your household. I think an allowance should be based on something that you say to your kids, ‘Hey, you know what? I would buy you these things, they are frivolous things, they’re fun things, and I’m gonna give you the money to make those choices,’” she said.
During the teen years, Schlesinger says money conversations should be about college costs and saving for it, along with understanding credit cards and debit.
Lucy. 10, is already thinking about college.
“Isn’t some colleges, like, kind of less money? And then maybe a really good college would be like a $1 million?”
She likely won’t need $1 million, but Schlesinger says when college kids graduate, they should focus on budgeting, student loan repayment, and monitoring their credit score every year.