Teaching kids about money has become increasingly difficult as plastic cards and smart phones replace counting money and, dare we mention, writing checks.
So, how do we teach kids the value of a dollar, if we rarely use them?
Well, the first step is simple. In order to teach your kids about money, you have to talk about money.
How do you start the convo? Here are a few easy ways:
- Start small using everyday activities. For example, grocery shopping – let them add up the items as you go, they might be shocked at how quickly the costs add up! Overtime, you can build on this activity by incorporating a budget and introducing taxes.
- Ask questions. If you’re going out to eat, talk about the price difference between the options, and ask them which they would choose. If they select the more expensive, talk through what you might have to give up later in the week.
- Make them part of your budgeting. If you’re doing any kind of financial planning, solicit input from your kids. Enlist them in your saving goals—no one watches you more closely than your kids, so they’re natural accountability partners! If you’re uncomfortable revealing too much of your financial picture, you can keep the discussions high level, but involving them makes money less abstract.
- Open a savings account for your child at Chartway! This is the best way to help them to learn to save for what they find meaningful in life. A lifetime of good savings habits can start now!
The key to raising financially successful adults, is to bring money and saving into the conversation early. Start small using everyday examples, like the cost of a toy they’ve been wanting and how long it will take to save up for it. Eventually, you’ll be able to explain how to save for a car, college, and even buying a home!