Economic Lessons for Kids Beyond Saving and Investing
When parents introduce more advanced concepts like fungibility, purchasing power, and asymmetrical risk, kids develop more analytical skills.
When parents teach their kids about money, they often teach the basics. The first basic concept is working for money. Parents sign up their kids to perform chores around the house and eventually graduate to having them earn money outside the home through babysitting, tutoring, coaching, or manual labor. The next concept parents teach their kids about money is saving it. Whether putting away a percentage of a child's earnings into a piggy bank, an actual bank or storing it underneath their mattress, the financial education imparted begins to inform kids of delayed gratification.
