Are you raising a money-smart kid?

Many experts feel even a child of two or three can appreciate what money can buy (just take any child to the toy store!).

By Grade 4, children should be able to:

• Identify the different types and denominations
  of money
• Know about checks and ATM cards—and how you can only use them if you have money in
  your account
• Understand the fundamentals of credit, i.e., borrowing money and paying it back (like lunch money when they forget theirs!)
• Compare the advantages and disadvantages of keeping their savings in a piggy bank, credit union, or with their parents
• Give examples of ways people earn income

• Make a short or intermediate financial goal for themselves (a video rental by Friday night…that new CD player by summer)
• Identify examples of taxes on income, goods,
  and services
• Calculate simple interest (math teachers come in handy here, too!)
• Develop and revise a budget

• Complete simple income tax forms
• Reconcile a monthly checking account statement
• Compare risks and returns on various savings and investment options
• Understand how creditors use credit reports to determine future creditworthiness
• Compare Annual Percentage Rates (APRs) to determine from whom to borrow (big brother is charging 22%!)
• Identify the balance owed, the grace period, and due date on a credit card statement

Examples taken from the Jump$tart Benchmarks and Guidelines for Personal Financial Management.