Teaching financial lessons to kids, how parents can talk about interest with kids?

It can be tricky getting kids to think long term when it comes to money, as opposed to immediate reward. Getting their heads around the idea of interest can really jump start your child’s enthusiasm for saving and help avoid running up debts in later life.So, what is interest?Interest is a simple concept, but a powerful one.Put simply: interest is the reward for saving — and the cost of borrowing.Put money in a savings account, and you get paid extra money on top, known as ‘interest’. That’s because the bank pays you interest for allowing them to use your cash.However, interest works both ways. It’s great when you’re saving, but not so great if you’re borrowing, because then you have to pay someone interest for using their money.Source: https://ift.tt/2sJMNDO via /r/Parenting https://ift.tt/2SR2qUJ