New research indicates children are developing life-long money habits by the age of seven. Check out the video below to see me break down the important money lessons by age groups and activities with Al Roker and Willie Geist on TODAY.
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After this segment aired this morning, a viewer wrote asking me this: “Can you elaborate on the debit card system you mentioned for 11-14 year olds on the Today Show this morning? Is it an actual debit card linked to their own account that is linked to the parent account? Any articles on it or further information on the best way to make it work? Thanks for any information you can provide!”
It’s hard to get all the details on in 4 minutes, so I wanted to elaborate for this viewer and others: I opened accounts at my bank for my kids linked to my checking account. Since I maintain the minimum balance they don’t have to worry about it. The accounts each came with debit cards. Then I set up automatic transfers into the accounts every week for their allowances. They’ve learned to monitor their balances online (they have separate passwords), all about the fees when you use an ATM other than your own bank’s, and how fast money can go when it comes automatically out of a machine. Before they have their licenses, you may have to be the bank for them. So, when they need cash, you give it to them, then have them watch you transfer the money back out of their accounts into yours. It’s worked really well. And when my son took off for college, I didn’t have to add this to the skills he needed to learn.
I hope that helps!