Financial advisor shares age-by-age tips for teaching kids about money

MILWAUKEE (CBS 58) -- With information about how parents can help children build healthy money habits at every stage, Tom Neumann of Drake & Associates joined us Monday, Sept. 28.

Neumann said lacking financial education can lead to overspending, high-interest debt and poor saving, and recommended parents start early. For elementary-age kids, he suggested age-appropriate chores paired with an allowance, noting a recent survey found 71% of parents give one. In middle school, he recommended involving kids in family budgeting and shopping to teach the difference between wants and needs.

For high schoolers, Neumann suggested helping teens open a bank account and build a budget, and letting them face small consequences, like overdraft fees, from mistakes.

Neumann also said it's not too late to teach adult children, pointing to a finding that about half of parents financially support their grown children, at an average of more than $1,400 a month.

Contact Tom by visiting Drake & Associates online.