WISCONSIN— Learning the difference between want and need: that can be a tough lesson for kids, but the holiday season is actually a good time to teach them about money and personal finance.
Certified Financial Planner J.J. Wenrich is the author of "Teaching Kids to Buy Stock: Stories and Lessons for Grown-ups." He says when kids are young it's about learning the concept of money and how to save. "That psychology of being able to not spend everything you have to be able to put some aside. It can be hard to overcome and so helping train kids that early on can really set the stage for them to have a lot more success financially as they grow up and become adults."
For older kids, Wenrich points out there are several topics they can grasp. Like personal finance lessons: saving and having goals. Also, talk to them about investing. Wenrich says, "you can start conversations about companies really when they're quite young. I mean kids recognize brands very early even in the toddler ages. When they get older you can talk about this is what this business does."
Wenrich points out that whenever there is a lot of money changing hands, it's a good time to talk about these topics with your kids.