Teaching Children How To Save
It’s summer time and your kids are home for the holiday break. Do you have fun summer plans or a summer vacation scheduled to keep your kids entertained during their time off from school? While it’s good to let your kids play and enjoy being kids during the summer, it’s also important to help your children continue to learn as well.
Over the course of the summer, many children lose academic skills and knowledge that often sets kids back a few months when school starts back up again in the fall. It’s important to read to your children or encourage them to read throughout the summer. And it’s important to keep up on their math skills throughout the summer as well.
One way you can help your children improve on their math skills this summer is to teach them about finances. There are so many opportunities to teach your children about the importance of earning and saving their money. Here are just a few ideas you could try this summer:
1. Give them opportunities to earn money.
Kids learn about the importance of money from a very early age. They learn quickly that money can get them toys. Likewise, they learn that the lack of money can keep them from what they want. By giving them the opportunity to earn money throughout the summer, your kids can discover discipline, hard work, and gain a better understanding of how money works.
Children (as well as adults) appreciate things they have to work for. Kids will appreciate getting a $20 bill more if they have to work for it than if it was just handed to them.
You could give your children chores around the house that equal a certain amount of money, encourage them to do some work for a neighbor, or host a lemonade stand. You could even encourage your children to sell some of their old, unused toys or clothes to make enough money to buy new items.
2. Include your children in financial decisions about your summer vacation.
Are you planning to go on a fun vacation this summer? Let your children help with some of the financial decisions so they understand why they can and can’t do different activities while on your vacation. For example, if you tell your kids what your food budget is, they will be more understanding if you tell them they can’t order the entire menu at the restaurant. Or you could let your children decide between two activities that cost a similar amount, but you only have enough time or budget to do one.
You could also help your children earn money before your vacation so they can buy their own souvenirs and treats along the way. This will give them a better appreciation for what they choose to buy while on vacation.
3. Create a savings place.
If you have little children, a piggy bank might be the perfect place to save money. That way they can see the results of their hard work often and will have a physical place to put their savings. If you have older children, it might be time to help them set up their own savings account. Show them how to access their account so they can keep track of the progress being made and see their progress.
4. Lead by example.
Most of what your children will learn about finances will come from watching and learning from their parents. So, consider your own spending and saving habits this summer and lead by example. Talk to your children about your finances. Be open about your financial goals and talk to your children about your own financial savings.
5. Talk to your children.
Financial lessons can sometimes be hard for children to grasp. Honestly, financial lessons are often hard for adults to grasp as well! So keep the discussion going throughout the summer, and into the school year. Schedule regular check-ins or meetings to discuss finances and answer any questions your kids may have. Show them your FinStrong account and help them learn about finances right along with you.
Summer is the perfect time to start talking to your kids about finances. Teach your children financial lessons now that will help them throughout their entire lives.