As a parent it’s my responsibility to teach my children about money. Children are never too young to be taught money lessons. A great example of that would by my nephew. He was taught at a young age to save some of the money he received for his birthday and the holidays. He would spend a little but he would also save a big chunk of the money he received. He’ll be 17 this year and he has THOUSANDS of dollars saved up. He also has two businesses (DJ and landscaping) and he has a job. I’m amazed at how financially responsible he is. I wish more ADULTS were a lot like him.
My children are ages 12 and almost 15. My son (12) really doesn’t put much value on money. It doesn’t mean anything to him. He just assume use his money to buy silly stuff from the school store. Most of the time he doesn’t even know where his money is. He just puts it where ever and it ends up getting lost.
Not too long ago he did save up to buy $70 sneakers. I don’t know why he had to have them. I guess it’s the “in” thing to do.
My daughter (almost 15) is horrible when it comes to money. Money is like sand or water in her hands. No sooner does it get in her hands she spends it on something (mostly clothes). Now she wants to save up to buy an iPhone. She needs $99. It’s taking her forever to raise that much because she can’t resist the urge to spend her money. She makes $60/mo dog walking (my does as well). She would have had the phone by now if she would have saved her money.
TD Bank sent me some great tips for teaching your children about saving money. I thought these were too good not ot share with my readers.
1. It’s All in the Visuals
Children tend to be visual learners. Hang up a savings goal chart, like an empty thermometer or table, that they can fill in as they reach their goal. For older children, have them create a ‘Wish List’ of items they want with the cost included. These visual reminders will help encourage them to save their money instead of spending it immediately.
2. Field Trip!
Every child loves a good field trip. Tell them you are going to take them on a field trip to the bank and watch their eyes light up. Many banks, including TD Bank, offer a joint savings account option that the parent and child can open together. Let them come with you when you open this so they can be involved in every aspect of their money management. Have them deposit money with you on a regular basis, particularly when they receive money for birthdays or holidays.
As a treat for filling up their coin jars visit the Penny Arcade at your local TD Bank and let them cash in their coins for deposit into their savings account. The interactive coin counting machine even offers the chance to win a prize!
– Visit the Store Locator to find the nearest Penny Arcade.
3. Penny Pinching
Compare prices in stores or online to help teach your child to spot a great deal. When shopping with your child, check the sale and clearance sections first. Let them know they may find something on their wish list or a similar alternative for a better, less expensive price.
4. Let Them Pick Up the Tab
Spending Mom and Dad’s money is easy! Help them to develop a better relationship with money by having them use their own money to pay for the items they want. They’ll appreciate the hard work that goes into saving your own money.
5. Give them a “Job”
Teach them the value of hard work by working out a reasonable rate for chores or other odd jobs around the house. Using these rates, share with them how many working hours it would take in order to afford the items on their wish list.
6. Here’s the Game Plan
Play a board game customized for teaching children about money or make up your own game! For a list of recommended games, check out this article from About.com. You can also visit the TD Bank WOW! Zone game room for interactive computer games for your child.
7. Let’s Make a Deal
Make a deal with your child that you will match a percentage of the amount they save if the save consistently or reach a certain amount. This could be anything from a video game to their first car—it’s whatever works best for your family!
In lieu of a percentage, reward your child for great savings habits. Some experts say it is most effective to reward children with something non-material like an extra hour of TV-watching, a later curfew one night or a sleepover!
Do YOU have any special tips to help teach children about money or how to save? If so I would love to hear from you. Please feel free to comment.
Kimberly
*I was not compensated for this post. I posted this for the benefit and enjoyment of my site readers. Any opinions expressed are entirely my own.
