How do we teach our kids about money? Education that most do not get in school or at home….
Here are a couple of ideas – more to come!
Start with saving! Do your kids have a piggy bank – or if they are older a bank account? I personally think that you are never too old to have a piggy bank… whatever it looks like. I have one – it has pictures of $100 bills all over it!
The best way to get your kids interested in saving their money is for you to pay lots of attention to it and give them encouragement when they put money in it.
Always be positive about saving and make your kids feel proud each time they choose to save.
When birthday and holiday gifts come, show them the money they’ve received and then work out a plan to save some or most of the money. Start a savings account in their name and deposit the money there. With on-line banking you can log into the account and show them how much they’ve saved.
Physically take them to the bank and let them deposit money in their account. The hands-on approach will make a big impact on the way they think of saving.
When they want to buy something, make them handle the money so that they fully understand the costs associated with spending. We live in such a plastic world these days – it’s no wonder our kids have no concept of money!
Teach your kids that saving today means they’ll have money to spend in the future for something they really want or need. Have them think of something they want to buy in the future (like a bike or even a car) and let them visualize their savings as something they really want. Get them to start a vision board of what they want to buy.
You can even take it further by encouraging them to save by matching their savings. Match them dollar for dollar to give them inspiration. Another encouragement would be to pay them interest (since the banks rates are so low) on a monthly basis, and then show them how their savings have grown.
Encourage them to earn extra money. Offer to pay for some one-time household chores or offer an allowance, then support them to save the money.
Cheer your kids on (if they are old enough) to look for ways to earn money like mowing lawns, babysitting or even a lemonade stand. What about selling old toys or games on craigslist? You then can put the money in their savings account. These simple ideas will help to teach them the value of money and early business skills.
And lastly – this one is key….When you make buy or save decisions, share them with your child so that they learn from your decisions.
TALK MONEY WITH YOUR KIDS!
You’ll be surprised at how willing and even excited they will become over saving and earning money.
Stay tuned for more ideas….. !