Financial Literacy: Teaching Your Kids How to Save Money
Financial education for kids by osmosis—is it possible?? Image from nymetroparents.com.
It seems like teaching your kids about finances should happen by osmosis—they see you doing it, they pick up those skills. Easy-peasy, right? The problem with that is…what are they actually seeing?
For example, if your pay check is automatically deposited to your account, they don’t see you taking a check to your credit union and making a deposit. If you recharge your Starbucks card via your phone, they don’t see you writing a check and balancing your account in your check book.
If we were kids today, money—the earning, saving and spending of it—would seem pretty magical!
“Looking for extra tools to help your kids financial education? There’s a club for that! Visit our “Save It Today!” Kids Club
It’s All About ESSG—Earning, Spending, Saving and Giving
For young kids, the basics to cover are straight forward—where does money come from, how and why do we spend it, how and why do we save it, and how can we give back to help others. As kids get older, the saving and spending get more intricate, since our life goals get more complex—cars, college and more.
Here are some things to cover with your children:
Earning: Money can be earned from an allowance, performing specific chores, or birthday and holiday gifts. Some sources are recurring, such as allowances or moving lawns during the summer, and others might be one-time gifts, such as cash in a birthday card. Earning the money is the starting point.
Spending: It’s never too early to talk about expenses, even though your child likely doesn’t have many. Understanding early that one day he or she will have to set aside money for a phone bill, entertainment, or food will lay a good foundation for later years.
Saving: It’s also never too early to have a savings goal, and a conversation about how to save money. The goal might be to buy a video game or a bicycle. Noting down the goal and an idea of when your child wants to achieve it is the next step. Start today with our Kids Club Savings Worksheet!
Giving: There’s a saying that a society can be judged based on how it treats its weakest citizens. Instilling a believe of service and giving back ensures a more caring future for everybody.
Here Are Some Tools To Help Your Family
We’ve put together a money management tip sheet to help you go over earning, spending, saving and giving. It includes advice on how to allocate money to each category, and how to change those allocations as your children get older.
If you want to talk about family-focused budgeting and education, give us a call at 603-645-8181 or visit our website to find our nearest location.
Return to "Blog"