As my son Skyler gets older (he is almost 6!) I often think about what I can do to best prepare him for his future. I came across this great list of financial milestones and want to make sure so do the best I can to him financially responsible as he grows up. I love the incorporation of saving and philanthropy. These have always been things that have been very important to me!
*Ages 3-5* Should know money is needed to buy things, and that money is
made by working; understand types of jobs and careers, practice waiting and
*Ages 6-10* Should be able to make choices on money (spend vs. save)
should know how to shop and compare and to make a basic budget, should have
bank account for gifts of cash. Should develop awareness of conversations
that remain in the family, confidentiality of financial information and
savings or cash flow. Begin allowance (some start savings here, charitable
donations with allowance). This is an ideal time to introduce children to
family philanthropy and have them participate in discussions on donations.
*Ages 11-13 *Should begin to save 10% of allowance and gifts (often much
higher on gifts). Should begin to have savings for “fun” purchases or
events. Understand social media risks and identity theft (giving credit
cards online). Should be included actively in philanthropy with
discussions and directing of donations.
*Ages 14-18 *Should understand college is expensive and need to choose
wisely. Should understand the scope of “life decisions” that will hinge on
actions taken here. Increase emphasis on social media risk as well as
criminal risk and academic records. Can take lead in family philanthropy
and use this as introduction to investments. Should have brokerage account
set up for introduction to investments with input in stock selection.
*College,* Should know to set budget and expenses, manage credit card and
payments and begin setting credit score. Trust distributions may begin
shortly and need to be prepared for these