There may never be a better opportunity than now to teach your kids about money.
Many parents are likely spending more time with their children thanks to closed summer camps and virtual schooling brought on by the coronavirus pandemic. We don’t always get a chance in our life to pause and be this present with each other,” said Stephanie W. Mackara, president and principal wealth advisor of Charleston Investment Advisors, based in Mt. Pleasant, South Carolina. Just like we want to teach them about eating healthy, exercising, and not sitting in front of the TV, we also have to include financial education for kids she added. With millions of Americans still unemployed, parents may also be struggling financially and don’t know how to address the issue with their kids. However, talking about financial health is just as important as discussing physical and emotional health, Mackara said. She suggests approaching the discussion head on with your kids, but not going into the “gory details” of your financial problems. Here are five crucial money lessons to teach your children right now. 1. Needs vs. wants If you are making cuts to your budget, looking at what is necessary and what is not, explain to your children what you are doing and why. Differentiating between a need and a want will help them build smart spending habits. Even if your own financial situation hasn’t changed due to the pandemic, chances are you know someone who is struggling or cutting back on spending. Ask your kids if they know anyone cutting back and, if so, what those families are changing, suggests Tom Henske, a certified financial planner with New York-based Lenox Advisors. “Kids are pretty observant sometimes,” he said. 2. How to make money With the changing job landscape for teens, normal jobs may not be available. But there are also opportunities to be entrepreneurial, said Henske, who developed and runs his firm’s smart-money kids program. You can even encourage your younger kids to think about how to make some cash. It can be anything from raking leaves and mowing lawns to child care and tutoring, especially with so many parents trying to juggle work and their younger kids. “Parents are afraid their kids are not going to get a good solid year in school,” Henske said. “They are looking for some supplemental work.” 3. Pay yourself first Once they start making money, make sure your kids know to start putting some of that money aside. They will learn discipline and how to value themselves and their goals, Mackara said. “Teach your kids that saving equals freedom,” she said. “When you save money you have the freedom to do so many different things.” You can also try to be a good role model. If you spent less money during the pandemic by not going out to dinner, traveling or paying for things like child care, put that money aside and tell your children what you did, suggests Henske. 4. Spend less than you earn While this goes hand-in-hand with saving money, it’s important to instill in your children the importance of not overspending. Creating habits early can make it second nature for kids when they are older. “It is just a habit that you save and you spend less than you earn,” Mackara said. “If they can do that with the first dollar that they earn, they will be set.” 5. Investing Saving money is crucial, but investing is a great way to really grow your money long-term, Mackara said. Teach your children as young as possible the benefits of compound investing, which is essentially your interest earning interest, she advised. While Mackara is a proponent of being diversified and investing in index funds over stock picking, she also thinks looking at specific stocks with your kids can really engage them. Talk about the shoes they wear or the games they play and relate it to the companies that make the products.
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I’ve been going into the public schools for the past few years . Ever since my children reached their teen years, in talking with other parents, it dawned on me that most of us missed out on learning the basics about money. Interestingly enough, though schools now focus on science and technology, they fall woefully short preparing students for financial independence after high school. In my work helping adults heal their relationship with money, I often hear complaints about how they were never taught to save or the dangers of credit card abuse. In today’s highly competitive and volatile world, teaching teens about money is very important. Let’s face it, money is a very touchy subject for most people, often more challenging to talk about than sex. And like our parents, most of us send our teenagers off to college without any lessons on saving or investing. And though the subject is critical to their success as adults, a discussion about whether to have a credit card, open a retirement account and when to begin a systematic investment plan often lead to yawns and eye-rolling. I am passionate about shifting this pattern and have worked very hard to create engaging, experiential workshops for teens old enough to receive working papers. Recognizing their built-in resistance, I begin each workshop asking thought-provoking questions. I start by asking them to reflect on their earliest memories of money.
Just when I begin to see the wheels turning, I send them into break-out sessions where they share their memories one-on-one. We then come back together for group sharing afterwards and this is when it gets really interesting. It never fails, that as one student shares his personal story, others nod in recognition and often relief. Yet, it’s also fascinating to watch as confusion and bewilderment set in when they listen to overwhelming differences in their peer’s childhood experiences. A few examples of early memories sound like these: “My brother and I had chores to do for allowance yet there was always an excuse when it came time to get paid.”Or “Whenever my mother and father argued, she would run to the mall with me and go on a shopping spree!” These distinctly different kinds of messages set the stage for teens to examine their own personal belief systems and how their earliest memories influence their present day attitudes about money. By listening to others’ candid reflections, they have a chance to compare their own stories. Once these long held beliefs are identified and understood, they allow for healthier financial foundations and ultimate decisions. After this exercise, teenagers are much more receptive to move onto the basics of Financial Health WORKING — SAVING — INVESTING I am a big proponent of teenagers working while in high school. Once they begin earning money, they understand the value in making their hard earned money work for them. I encourage each of them to set aside 25% of their paycheck for long-term investment. Once they’ve accumulated $2500, they can begin investing in no load index funds such as Vanguard, Fidelity or T Rowe Price. I explain that unlike other mutual funds, no load index funds do not have up-front sales charges ranging from 1-5%. In addition, this type of fund offers low operating expenses and diversification so that close to 100% of every dollar invested stays in their account. CONSISTENT CONTRIBUTION We talk about the importance of consistency. I encourage teens to invest on a monthly basis to take advantage of dollar cost averaging. Dollar cost averaging is an investment technique of buying a fixed dollar amount on a regular basis, regardless of the share price. When prices are low, a greater number of shares are purchased despite the drop in value. Then when prices are high, fewer shares are purchased while the value of the underlying investment has risen. It has been proved time and again, that an investor who uses this strategy will outperform someone who tries to time their purchases and sell-offs based on the market’s performance. AVOIDING CREDIT CARD TRAPS, PITFALLS AND OTHER FISCAL REALITIES I then conclude our talk with the subject of credit cards. Many adults I work with are unaware of the cost of carrying credit card balances. People assume that if they make the minimum payment each month, they are in good graces with the bank holding the card as well as the credit rating services. I begin by explaining the Rule of 72, a simple formula to determine how long an investment will take to double at a fixed rate of interest. By dividing an interest rate into 72, investors get an idea of the number of years it takes to double their money. With today’s money market accounts paying less than 2%, it would take approximately 36 years for their money to double. Next, I explain that most banks charge upwards of 20% on unpaid credit card balances. When they do the math, they are shocked to learn that banks are doubling their money on unpaid credit card balances every 3.5 years! This discrepancy hits them straight between the eyes. From there, I simply conclude that credit cards are a great tool to build credit when used for purchases only when they have the same amount or more in their bank account to pay the balance in full each month. This approach helps curb impulsive purchases and unconscious spending. Imagine how different their adult lives could be if every student were required to learn the basics I’ve outline above? Better yet, imagine how different you, the reader’s financial picture would be today had someone explained these concepts when you were a teenager? Don’t we owe it to our children to have candid conversations about money now? Sending our teens out into this consumer driven world without the benefit of a solid financial foundation leaves them susceptible to all kinds of expensive mistakes that could easily be avoided. Families still seem to be struggling with how to help their children learn to manage money. One indication is that parents can't keep from indulging their kids. In the 2016 Parents, Kids & Money survey from T. Rowe Price, 46% of parents said they have gone into debt to pay for something their kids wanted. Birthdays come with big price tags: 41% of parents spent $200 or more on a child’s birthday presents in the preceding 12 months, and the same percentage spent $200 or more on the child's birthday party. Among kids, 57% agree with the statement, "I expect my parents to buy me what I want." And not surprisingly, 58% of parents agree with the statement, "I worry that I spoil my kids." Furthermore, 71% of parents are reluctant to talk about money management for kids. When asked how often they take advantage of opportunities that occur throughout the day to talk to their kids about financial topics, less than half said they do so most of the time. To jump-start the conversation during Financial Literacy Month, here's my list of 10 things every kid should know about money by age 18, with painless ways to get the job done. 1. How to Save for a Goal Start simple and start small, with a fun savings bank that's as much a toy as it is a teaching tool for preschoolers. It's tough for anyone to save for the future, especially young children with short time horizons. For example, don't expect your 6-year-old to grasp why it's important to save for something as abstract as college. But she can learn to put aside her coins to buy a toy or collectible. To make the goal even easier to grasp, attach a photo of the coveted item to the savings bank and watch the money add up. When children move into elementary and middle school, help them open a bank savings account. And the goal could be something bigger: a new tennis racket or soccer shoes, or a school field trip. Unfortunately, today's piddling interest rates don't give children much in the way of rewards. But you can help remedy that by offering to match their savings. Once kids reach high school, college becomes a real goal that's right around the corner. It's fine to require them to save a portion of their earnings from a part-time or summer job to cover college costs. Every dollar saved is a dollar they don't have to borrow. 2. How to Manage an Allowance Kids will spend an unlimited amount of money as long as it's yours. When their money is on the line, it's a whole new ball game. Start an allowance around age 6 with a weekly amount equal to half your child's age. You can increase it as your child gets older and your expectations change with regard to what he or she should pay for. Don't tie the allowance to basic household chores that kids should be expected to do without pay, such as doing the dishes and making their beds. Instead, tie it to financial chores: spending (and saving) responsibilities that the kids take over from you. You could start by having them pay for their own collectibles, for example, or treats at the grocery store, and expand their responsibilities as they get older to cover entertainment, clothing, even part of the cell-phone bill. To make the connection between work and pay, let children earn more by doing extra jobs -- such as vacuuming, raking leaves, taking out the trash or whatever you define as service above and beyond. 3. They Won't Get Everything They Ask for Next to "I love you," the most important words you can say to your kids are "No, you can't have that, and here's why." Part of the fun of being a parent is buying things for your children, but say yes too often and you’ll create spoiled kids who grow up feeling entitled. The key to saying no and making it stick is to tell your children why you're denying a request and offer an alternative if possible. Unless you give them a rationale, kids will be tempted to chip away at your resolve and hope that you'll eventually cave. So, for example, if your 8-year-old wants a skateboard and you think it would be too dangerous to own one in your urban neighborhood, say so. If your 13-year-old wants a new video-game system and you think his existing one is adequate, say so. Better yet, tell him he'll have to spend his own money if he wants to replace it. Once kids have their own resources -- from gifts, allowance or earnings -- make it 4. How to Spend Smart Learning how to spend money is just as important as learning how to save it. Preschoolers can use coins from their piggy banks to buy things from vending machines or at the dollar store. You've accomplished a lot if you teach very young children that money can be exchanged for other things. For older kids, websites and shopping apps make it easy to compare prices on everything from video games to prom gowns. But don't ignore the old standbys: Board games such as Monopoly, Payday and The Game of Life teach kids how to parcel out their money. And nothing beats a real-life trip to the grocery store to compare prices and find the best buys (let the kids keep savings they spot). As a parent, you can always put some limits on what they buy -- nothing illegal or unhealthy -- but, for the most part, let kids make their own spending choices. Children also need to know that they have rights as consumers. If your daughter buys an item that breaks, doesn't fit or is otherwise unsatisfactory, take her back to the store so she can return the item and get her money back. 5. How to Be Generous Remember that charity involves gifts of time -- and thoughtfulness -- as well as money. Parents are the prime role models here, so children will learn invaluable lessons if you volunteer to shovel snow for an elderly neighbor, make a meal for new parents or bake cookies for a charity bake sale -- and have the kids pitch in. When it comes to donating money or things, the more personal, the better. Don't just send off a check to your place of worship or favorite charity. Talk with your children about what you're doing and why you chose to aid that cause. Have the kids pack up clothes they've outgrown or toys they no longer play with and come along with you to donate them to a family shelter. Or they can use their own money to buy a toy for a holiday gift drive. Designate a special container for found money that kids pick up under the sofa cushions or fish out of their jeans pockets. When the jar fills up, they can give the money to a charity or cause of their choosing. Or be more systematic and have them put aside 10% of their allowance to donate as they wish. 6. How to Earn a Buck Kids' first experience with their role in the labor market is the extra chores they do around the house. As they move into middle school, they can expand their horizons by doing work in the neighborhood, such as babysitting, lawn mowing or computer coaching, or even formalizing their skills in a business of their own. Their first encounter with a salaried job is likely to be in their teens, working part-time or at a summer gig. Studies show, however, that labor force participation among teens has been declining as more young people spend their time in summer school, at camp or engaged in other activities. But teens who don't hold down paid jobs are missing out on valuable life lessons. Showing up on time, taking responsibility and getting along with coworkers and supervisors are all critical skills -- and so is knowing how to find a job in the first place. Social media and online job sites are a great place to start. But even today, nothing beats making personal contact with a prospective employer. Earning a paycheck also gives teens opportunities to manage money. They'll learn, for example, that tax withholding applies even to 16-year-olds. And they can get a head start on retirement savings by contributing to a Roth IRA up to the amount of their annual earnings, with a maximum of $5,500 in 2016. 7. How Fast Money Grows One trick every kid should learn is the magic of compound interest: Small amounts saved when you’re young eventually grow into big piles of money. To show kids how rich they can be, let them plug numbers into a compounding calculator, such as the one at MoneyChimp.com. Another money trick is the "Rule of 72": 72 divided by the interest rate equals the number of years it will take your money to double. 8. What It Means to Invest Don't assume that starting a stock portfolio is for adults only, sort of like an R-rated movie. On the contrary, buying stocks is more like a PG-13 activity. Children who are that age or even younger are able to understand how the market works, as long as you stick to the basics. Just explain to kids that owning a share of stock is like owning a piece of a company whose goods they purchase or whose stores they patronize. Avoid the jargon. Their eyes will glaze over fast if you drone on about diversification, asset allocation or market capitalization. They're more likely to ask, "How can I buy a stock?" "Who is this Dow Jones person?" "What's the Fortune 500?" Buy them stock in a favorite company (or help them invest on their own) so they can follow news about the company and changes in its share price. 9. How to Balance a Checking Account Every teenager should have a checking account (with an ATM or debit card) and know how to balance it, preferably as soon as he or she gets a part-time job. Cosign for a custodial account if your child is under 18 and the bank requires it. The cashless society may be a techie's dream, but even for older teens nothing beats the hands-on experience of managing real cash -- via a website, an app or a paper check register -- and making the income match the outgo. That's the foundation for all future financial transactions, whether it's getting a credit card, setting up a budget or buying a house. Money Matters on Campus, a survey of nearly 90,000 college students by education technology companies EverFi and Higher One, found that managing actual money had positive effects on the financial knowledge and behavior of college students. "Young adults should be provided with opportunities to gain financial experience managing a bank account, ideally before college," the report concluded. 10. How to Stay Out of Debt Teens need to know that plastic is not cash. Rather, using a credit card is taking a loan that you have to repay with interest if you don’t pay off the entire amount each month. Use this eye-opening example to illustrate your point: Say you put $25 a month toward a $2,000 balance on a credit card that charges 13% interest. It will take you 181 months to pay off the balance -- and cost $2,519 in interest (use MoneyChimp.com's credit card payoff calculator to try out different number combinations). If teens understand that, they'll be well on their way toward approaching debt with caution. It's often recommended that teens be made authorized users on a parent's credit card. I disagree. I'm not against credit cards, but I think teenagers in general aren't mature enough to handle them. And kids won't learn personal responsibility as long as parents are paying the bills. Once young people have experience covering their expenses without overdrawing their checking accounts (say, by paying the rent on their apartment in college), they can consider applying for a credit card -- preferably when they're 21 and can do it on their own. Money is what makes the world go around. Love it or hate it, money is important. The problem is most young adults are entering the “adult world” with almost no idea how to manage their money. As my son just turned 18 months, he’s still a little too young to understand and appreciate the value of money. But it’s still on my mind about how I’m going to teach him to appreciate and value the importance of money and money saving tips as he gets older. While I’m sure that things are destined to change as time progress, here are a few of the things that I feel will be beneficial when he is old enough to appreciate: 1. Show Them What You’re Working With Currently, my wife and I use a basic Excel spreadsheet to keep track of all our monthly expenses and our monthly cash flow. I think it will be truly beneficial to sit down with our son to kind of show him what we have coming in versus what we have coming out. We would then show him what we contribute towards our savings account, what we tithe, and also retirement savings. This way we show him that every dollar that comes in is not spent, and a good chunk goes toward either the savings account or saving for his college education. Most kids have no idea how their parents manage their money. They don’t know where the money is coming from or where the money is going to. The first step in teaching kids about money is showing them how you use it. Show your children how much you spend in certain areas or how much money you save each month. 2. Get Techy Nowadays there are many money education sites that can teach kids the basics of money. One example that comes to mind is kids.gov. Before they plan to work for money, they must be comfortable with the real thing. They need to touch dollars and coins, count them, stack them and learn that they are concrete things.When they become a little more advanced, you could even consider games like the Stock Market Game. Kids are able to invest $100,000 of fake money and purchase securities in real time. That way they could really see how the market really works. What kid doesn’t like to play games? There are dozens of excellent games out there which can teach them about money and finances. 3. Walk the Walk Kids watch more than they listen to lectures. You might be the greatest money manager in the world, but if you don’t show and tell your kids about what you’re doing, they can’t learn from you. 4. Make allowances count Growing up my parents gave me basic chores of just mowing the lawn and taking out the trash, and the only thing I really got paid for was the lawn. I think, though, that by incorporating other weekly tasks for my son to do, will give him both a sense of responsibility and also an appreciation for the money he earns for the task he does. Go beyond spending money. Require kids to save, invest, and donate. They need to learn money isn’t just for spending. The older your child is, or depending on their maturity level, you can add more chores or give them more responsibility. While there is nothing wrong with giving your children money or gifts, not making them work for something in their life can leave them without a sense of money. You don’t have to force them to do everything around the house. You can give them options. Once they have reached a certain age, you can start offering them opportunities. You can still require them to do the basic chores around the house. Find some additional things to do around the house, let them decide if they want to take up those jobs for money or pass. 5. Play Match Maker Just like a 401k match, you can add to their savings total. That should give them an incentive to fill their piggy banks. Don’t forget about the grandparents! Let them match, too. As your child gets older (or even when they’re still young), you can open up a bank account for them. There are plenty of banks which offer savings account for kids. In fact, there are some banks out there who offer decent APY. for the kid’s savings accounts. Not only can you teach them about saving money, but you can teach them how banks work and some of the advantages of finding a good savings account. There are a lot of banks out there where you can open an account in a matter of minutes. 6. Be Nice, Just Not Too Nice. Even if you can afford to give your kid a comfortable allowance, don’t. By about age 12 kids should do small paying jobs for friends or family members. At 16 they’re capable of getting summer jobs and saving for their own expenses. No matter how you do it, teaching your child the value of money is imperative to their financial success. Give your child the tools they need to become a financial champion 7. Get out the Credit Card As soon as your child turns 18 (probably even before), they are going to be flooded with credit card offers. You know how many offers you get in the mail? Now imagine getting those offers as an 18-year-old. Before your child is hit with those “magic cards,” make sure they understand the responsibility and fees which come along with the credit card. I’m sure you’ve heard stories of college students who racked up thousands of dollars in debt after they got their first credit card (and that’s what the credit card companies are hoping for). Don’t let your child be another one of those stories. Regardless of how you feel about credit cards, make sure your kid has the information they need. 8. Need Vs. Want One of the most important things you can teach your child (and you can get started at a young age) is the difference between a “need” and a “want.”Sure, they may want a new cell phone, but it’s not a need. They may want a new video game, but it’s never going to be a need. Walk them through the differences between a need (heat, food, water, etc.) and wants (gadgets, candy, etc.). When you’re walking through the grocery store aisle, there are plenty of ways you can show your kids the differences between the two. 9. Talk about Taxes Once your kid is wandering the high school halls, it’s a good time to explain taxes and how they operate. You don’t have to be a CPA to explain taxes to your kid. Show them how much you pay for taxes. Walk them through the process and explain the various kind of taxes you have to pay every year. For a lot of parents, they don’t think about teaching their kids about money. They are more concerned with keeping them happy and healthy, which is great, but you should also help them understand finances and the importance of managing them. It doesn’t all have to be sitting down looking at numbers on a budget. You can turn a grocery store trip into a lesson. There are fun apps and videos you can use with your children. 1. Be a good financial role model.
Remember, your kids are always watching you. They learn by observing adult behavior, so remember that you're constantly sending financial cues to the children in your life in ways big and small, says Linda Descano, women and money expert from Citibank's Women & Co. "Be a good financial role model by using examples from your own life, either success stories or shortcomings, to teach kids about money. Descano said. Your kids can learn from your successes and mistakes, so handle your money the way you'd want them to handle their own. 2. Introduce them to helpful digital tools. Now that technology has virtually taken over our lives, there is a wealth of financial services and smartphone apps that can help you show your kids how to manage their money and track their spending. You can start by trying Manilla.com, the free, award-winning and secure service that lets you manage your bills and accounts in one place online or via mobile apps. Teach your children the importance of paying their bills on time by explaining why Manilla's automatic bill pay reminders are useful. With Manilla's free and unlimited account document storage, you can easily show them what it means to get a bill or statement and why it's important to save them. 3. Have deliberate conversations about money. Instead of going with the standard, "Money doesn't grow on trees!" comment, have thoughtful and meaningful discussions about finance that encourage positive feelings about money, says Tamara Monosoff, founder of women in business website MomInvented.com. "Avoiding the subject actually creates unnecessary negative feelings," Monosoff said. "Trust me, when there is unspoken financial strain, children know and feel it. Instead, talk openly with your kids about the money you make and what it pays for, such as home, food, clothing and transportation." This isn't to say you should burden your children with every financial detail, Monosoff added, but a conversation like this will give them context and will help them grasp early on that it costs money to have the essentials and that everything else is extra. 4. Stress the importance of finding the total cost of a service or product. When children spot an advertisement for a shiny smartphone, tablet, music player or other toy, and they shout, "I want that!" they aren't aware of a major factor that the ad conveniently leaves out: the total cost, said Caroline Knorr, parenting editor of family media company Common Sense Media. Digital devices today don't necessarily come with a simple one-time fee — there are service charges, maintenance costs and warranty fees, as well. "Be frank about the real price of the convenience afforded by smartphones and other high-tech devices," Knorr said. "Your kids need to know that there's more to them than meets the eye." 5. Create games that make learning about money fun. Turn everyday chores and errands into a learning experience, says Jen Senecal, founder and editor of parenting website Keekoin.com. "[My kids and I] play grocery and market games that involve fake money that they've 'earned' by helping me pick up toys," Senecal said. "The market items have prices and they can only buy what they have money for. It's a fun game that isn't too serious, and carries over well into other game ideas, like 'hairdresser' and 'nail salon.'" Another option? Introduce the more obvious kid money management system — the piggy bank. Senecal added that each of her three young daughters have their own piggy banks, which they use for spare pocket change from their parents. They save throughout the year and then break it out on special occasions. "When we visited Disney World this past year, we emptied their banks with them, counted their savings and told them that they could bring it along to buy something while we were there," Senecal said. "They were especially excited that it was their own money that bought a special token from our family trip." Finance may seem like a rather grown-up and mature topic, but the value of money is something we should be teaching our kids from a young age. I believe teaching kids about money management is a valuable life lesson that they can take through to adulthood and when they start earning an income. Plus, I also feel it helps to avoid the phenomenon that seems to be happening lately of entitlement and kids believing they should just be handed every gadget under the sun. Don’t get me started on this topic! I’m pretty strict with my kids in many aspects of raising them, but for good reason in the long run. Implementing the basics of money management, goal setting and budgeting while they’re young will prepare them for when they need to start making their own financial decisions. These 8 tips are simple but will help kids learn that money really doesn’t grow on trees! 1. POCKET MONEY Giving children an allowance is a good way for them to start feeling independent and appreciating the value of money. It’s a fun and practical way to teach them the worth of notes and coins, as well as counting. You can choose whether to give them money with no strings attached, reward them once their chores are completed or a mixture of both. 2. MORE WORK = MORE MONEY Make a list of jobs on top of their usual chores and routines. If they complete some extra chores, give them a bit of extra cash. This way, they will understand that they have to work hard and earn the extra money. So if they are wanting something, get them to start saving and doing a few more chores for a bit more extra money. 3. SPENDING THEIR OWN MONEY When going out, encourage them to take their own money or pocket money that they have earned. If they spend all their money on something but expect something else, tell them they have to wait till their next lot of pocket money. This will show them that you have to wait and build up money. They will appreciate their independence and the importance on not relying on others for money. I believe letting them make their own decisions (and mistakes!!) is a more realistic approach and they can learn from these blunders. My kids now 12, 14 and 14, enjoy going to the movies and other places that all cost a pretty penny with their friends. They’d go every week if I handed them the money and as we all know, it adds up. Instead, I don’t mind how often they go but they have to use their own pocket money. This has helped them to manage their money so they have enough for these occasions and to say no if they need to as they either don’t have the money or want to save it. One of my daughters takes enough for a ticket and takes snacks from home to help reduce the cost. 4. SPENDING VS. SAVING When you give your child a lump sum of pocket money, have them split it into ‘savings’ and ‘spendings’. These can be accounts or separate jars/tins. This will teach them that saving is a good objective and will introduce to them the habit of not spending all their money at once. Another great idea is having a charity jar to teach your child the gift of giving. 5. SETTING GOALS If your child says they want to buy something, get them to write it down and the cost beside it. This way, they can learn how to save and watch their money can grow with a little bit of persistence and self control! The satisfaction they will feel when buying their desired gift after saving is a valuable life lesson. Children often like having the responsibility! 6. USE MY KIDS MONEY SAVINGS PACK Use these charts to help the kids learn to save their pocket money for a particular item they are wanting. 7. COUNT MONEY OUT Get your child to help count out the cash for you when you get to the register to pay. This way, they will understand that everything costs money and will start to understand the value of items. 8. GROCERY SHOPPING Take your kids to the shops with you and show them how to compare prices. Ask them to choose the cheapest item out for you or help them compare prices. This behaviour will demonstrate that you want to save your money through wise decisions. |
AuthorHi! I am Tim Connolly and I am providing help to parents to bring up their children in a healthy environment. I am working in this profession from last 5 years, if you have any query regarding this please contact me. Archives
June 2021
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