It All Adds Up
A lesser known, yet very important, lesson that parents also pass on to their children is the way in which they spend and save their money. Instead of pushing money lessons to the back burner, it’s a good idea to begin teaching kids how to handle money so they can grow up as financially responsible adults.
This article will tackle a few interesting and important tips that we should all be teaching our kids. Today’s giveaway item is a coin jar with a digital money counter on the lid. It counts all of the change deposited into the jar, letting your kids see how coins can add up to a substantial amount of money.
To be entered into the drawing for the Coin Jar Digital Counter, please leave a comment on this post about the best money tips and tools for kids. We will announce the winner on Friday, January 6, 2012.
It’s Okay to Say ‘No’
As a parent of a three-year-old boy, my wife and I know how much joy it brings to be able to give to our son – especially when he asks nicely and puts a ‘please’ on the end of the request. But we know that we can’t say ‘yes’ to every request that he has.
That would be expensive, impossible, and it would set him up for heartbreak and failure as he gets older.
Teaching kids that they can’t have every single thing they ask for will help them understand choices, patience, and to value the things already in their possession.
Saying ‘no’ also gives you a chance to teach your kids why you’re saying no. It’s a great time to slip in a money lesson about cost, spending wisely, and saving money.
A Piggy Bank is a Savings Account
Our little boy loves hearing change ‘clink’ as he puts his coins in his porcelain piggy bank. And even though he’s only three, we’ve started teaching him about how money will add up when you keep saving it.
A piggy bank doesn’t have to be condemned to a life of decoration; it can be a great tool as you begin to teach your children about savings accounts.
We’ve also started a 529 College Savings Plan for our son, and we deposit the money from his piggy bank into his 529 account roughly 2-3 times a year. The bar graph really helps him see the financial goals that we’ve set up. And he loves sitting in my lap and watching me click online.
Payment for Chores
Remember way back when you were growing up? Back when your parents had a list of chores for you? Back when society was more strict with its money? Back before everyone put everything on credit cards?
Instead of buying things for your kids, let them buy what they want with money they have earned by doing chores around the house. I would recommend teaching them the basic stuff first without offering payment; basics like picking up toys, cleaning their room, and taking their plate to the sink.
But once they have grasped the concept of obedience and helping around the house, you can begin to add on little things here and there.
Small payments for age-appropriate chores can help your kids learn about what it takes to earn money. And if they’re spending their own cash at the toy store, it gives you a great chance to teach them how to manage what money they have and plan for what they want.
Alright, hit us in the comments section with your best money tips and tools for kids. Remember, each comment is an entry for the Coin Jar Digital Counter.
{ 6 comments… read them below or add one }
We combined both savings and an allowance. My children earned an allowance and were required to save half of it. It is a great lesson.
I try to try to teach my kids to value any money that they receive. I also tell them to set goals for whatever toy they want and not to spend the money until they reach those goals.
We plan to teach our daughter the value of saving money but also donating to charity, to give back to others. (she’s too little to want anything to do with money except chew on it)
Hi Ryan, I enjoyed your article. We have made banks with four compartments and divide all income into “Give, Invest, Save and Spend” categories. It leads to all kinds of fun and insightful conversations and helps my children enjoy and learn in the present while planning and practicing good habits for the future.
My wife and I always make our boys (7 & 5) take half of any money they receive (birthday, holidays, grandparents, chores etc) and put it in the bank. The rest they can spend themselves. The catch is they can’t just walk into a store and figure out what they want, they have to know beforehand. They always want to leave with something but it teaches them to wait and more often then not they see something else they would rather “save” for.
We have a piggy bank for the girls that is out in the open. They too love to hear the ‘clink’ of change being deposited. With our oldest (3) we will also take the change out from time to time to teach the coin names, counting, adding, etc. We feel that knowing what money is will hopefully start an appreciation for it as well.