Financial Words Parents Need To Teach Their Children

This list, taken from a Forbes article written by Jennifer Ryan Woods, children are particularly very interested in personal financial management. However, parents do not want their children thinking about such “adult” things at a very young time.

But teaching finances is very important. Ryan stresses in her article the facts that support these ideas. But taken from her context, it is important to learn the following terms:

1. Savings

2. Budget

3. Loan

4. Debt

5. Interest

6. Credit Card

7. Taxes

8. Investment

9. Stock

10. 401(k)

11. Credit Score

All these terms should be taught before children turn into 16. Each, according to Ryan’s article, could be taught at certain points in a child’s life. Savings could be understood by four-year-olds. Budgeting is something understood by five and six-year-olds.

The list goes on, and once your child understands the basic concepts of the following, he or she is on his way to financial success!