Guide your children to establish financial goals

A folder alongside an investment report and a magnifying glass.

Your 11- to 14-year-old children lead busy lives — balancing school, sports, hobbies and their social life isn’t easy. More and more, your kids want to figure things out on their own. According to a CIBC surveyabout the age when kids begin to manage their money independently. Opens a new window in your browser.,  14 is the average age when kids begin to manage their money independently. With so much going on, your support is important to help your kids establish and maintain financial goals, and to help lead them to long-term financial success.

Delaying a short-term want for something more meaningful later helps children understand the value of money. At this stage, it’s natural that their interests are more expensive. They’re into electronics, musical instruments, going to movies or concerts and other activities. Share the goal planner tool with your pre-teens to help them set goals and plan for the future.

Use a goal planner

Whether it’s a digital or paper tool (PDF, 745 KB) , your children’s goal planner needs to include short- and long-term goals. With a goal planner, your children can track their goals and learn that good things come to those who save.

The magic of compounding

Saving for a goal may take time, but it helps reinforce the idea that money doesn’t just “sit” in a bank account. Rather, money “works.” Thanks to the power of compound interest, money in the bank earns interest over time, compounding over and over again. This can lead to an exponential growth effect. Show your children how their savings are working for them so they can appreciate the benefits of saving and investing their money for the long term.

A dollar bill falling into a jar filled with money.

Keep personal information safe and secure

So much information is shared over the Internet and social media — information that never would have been shared even 10 years ago. Teach your kids how to keep their personal and financial information private with these tips:

  • Think twice before clicking. Phishing scams and clone sites will try to lure children to provide their private information.
  • Avoid sharing personal information (e.g., address, birthday, full legal name) online. If they’re unsure, they can ask you before they do so.
  • Use only trusted payment methods. If they shop online, talk to your kids about only using trusted payment methods to prevent identity theft.

You know your kids best. Tailor these activities to your family’s needs. Goal planning can help prepare your kids for financial success and reinforce their being financially responsible. The lessons they learn now will hold them in good stead for the future.