How can you teach your kids to be fiscally responsible, even at a young age? Once they’re older, how can you instill smart money-management habits? By making money matters an educational and fun challenge.
Start when they’re young. Remember the first time you saved and saved and paid for something on your very own? What a sense of accomplishment for a child! Start your little one saving young with a piggy bank that he or she can see, touch, feel, shake, and hear sounds that change after inserting each coin. Next, consider getting a digital piggy bank that tracks savings. For example, the decimal point and numbers show the amount inside “Piggy,” teaching your child what the numbers associated with the money look like. With each “cha-ching,” your children will see how saving money adds up – a very important lesson to help teach your kids about money management.
Visit a bank. Real-life banking is a mystery to young children. Explain it best as you can but a better way is to show them. Take your child on a trip to the bank, open an account in your child’s name, have your child fill out the deposit slip and hand it to the teller – along with his or her weekly allowance money. Also show your child how ATMs work. You may want to look for websites that teach kids basic banking skills and that help them keep track of their allowance, in a creative and easy format.
Explore simulation websites. Free online literacy simulations can help teens and young adults to try their hand at life’s finances without any risk. For example, Money Mission from PCM Credit Union was created to help “expand the financial literacy of today’s youth.” Using the game’s simulated village, users consider the financial obligations they face and how they would deal with them in real life.
The bottom line: Teaching your kids the value of money and of money management doesn’t have to be dull or difficult. Just log on, click and enjoy!