Teaching Your Children About Money
Considering the impact that finances have on quality of life, you may be surprised to learn that most schools—even the finest—do not teach children about money.
But YOU can . . . and you should!
There is some debate among parents about the ideal time to begin discussing money with their kids, but there are some activities that you can utilize to introduce financial concepts to your kids in a fun & healthy way, even at a young age. While six years old may seem young, your child is capable of understanding basic money concepts. This is also a fun time to allow them to be a part of the financial process.
ACTIVITY: Ask your child to set a reasonable goal, such as buying a toy or going to the movies. You want to ensure that the goal is achievable in a reasonable amount of time. If the goal is too lofty, this can lead to frustration, rather than production. Label a jar with the name of the toy or movie and the amount needed to buy it. When your child adds money to the jar, use that as a time to count the money and talk about how much is still needed to make their purchase.
Richard Robbins, Senior Private Wealth Advisor, and parent of two said, “when we started this practice in our house, we used clear glass jars and my kids loved to see the coins stack up. We also use this exercise to encourage our kids to be patient. We know that some of their goals will take longer to achieve than others and this jar method helps them to understand the value of investing their time & money into reaching their goals.”
You can also consider adding some bonus options to this activity! Maybe your child came home with a stellar report card, reward their performance & give their savings total a boost. What if your child isn’t very interested in saving? Try getting them involved by offering to double their investment for a particular time period; for example, double their investment for a particular day.
These simple activities are easy and effective ways to have a healthy conversation about money with your children. The fun elements will help you introduce healthy savings habits at a young age that will have a lasting impact on their financial future.