Talking to kids about the household bills, by age

Paying the bills is usually done out of sight, and children eventually have to understand and handle it themselves. What a child takes from it changes with age. Children pick up your moods and attitudes about money as well as your words, so start the conversation at a time when it can be calm.

Ages 3 to 5

• Explain that the lights, the water and the TV aren't automaticThey're services the household uses and then pays for, along with things like garbage pickup.
• Talk about planning ahead to cover what they cost
• Practice waiting, planning and countingAt this age the lesson doesn't need dollars and cents. Waiting for what they want, planning, counting and staying focused all build toward managing money later.

Ages 6 to 12

• Let them see you pay the billsA preteen may not know why you sit at the table with the checkbook or wait on the phone. Tell them you're paying bills and that it's a regular part of your routine.
• Connect each payment to what it paid forPaying the electric bill keeps the lights and the TV on. Paying the credit card bill pays back the money borrowed for the things bought with it, and a loan is paid back with more on top, in charges called interest.
• Think out loud as you handle moneyChildren draw their own conclusions from what you do, and they aren't always the ones you meant. Saying what you're doing and why lets them follow along.
• Build the habits as well as the knowledgeThis is the age when habits, values and rules of thumb take shape.

Teens and young adults

• Explain how you pay, and why your system works for youIt shows a teen why a system matters, and how a money habit forms.
• Talk through the ways to paySome bills come out of an account automatically, which keeps them on time. Talk over the other ways too: in person, by check in the mail, by phone and online.
• Help them set up a system for a bill of their ownA teen may already pay for a cell phone or car insurance.
• Let them research and compare the ways to pay a bill