Teaching your young child about money

August 03, 2018

 

At some point in life, your child will learn money management skills.  However, it’s up to you, as parents, to make sure that happens soon enough!  Many think the appropriate time is when your child gets their first job.  The reality is, there’s a lot to learn before then!

 

Receiving Money
Long before they collect their first meager paycheck, your child will likely have many opportunities to receive money.  Birthdays, holidays, tooth fairies, and grandparents all tend to dish out the “dough”. It’s also common for children to earn money through allowances.  Some allowances are given for completing chores around the house, others are given with no strings attached.  Regardless of how your child receives their money, you should set guidelines early on about how much can be spent and how much should be saved.

Saving Money
Though a piggy bank is a simple instrument for your child to save money, opening and using a bank account paves the way for far more learning opportunities!  As adults, we don’t throw our savings into ceramic figurines, so why would we teach our children that?  By taking them to the bank, helping them make deposits and withdrawals, and interacting with the staff; they will be much more equipped for those real-world experiences later on in life.

 

Plus, most banks already have a fun children’s program that incentivizes saving money!  Typically, each time your child makes a deposit into their account, they’ll earn a small gift from the bank.  By rewarding good behavior (saving money) they’ll want to keep doing it!

 

Spending Money
It’s a fact of life: money burns a metaphorical hole in our pockets, no matter our age.  This is why it’s important to teach your child to be a wise steward of their bank account early on.  When your child wants something, have them set a savings goal for that item.  Once they reach their goal, bring them to the bank to make a withdrawal and then encourage them to work with the cashier at the store.  By giving them ownership of their money, they’ll come to understand the value it has.

 

Don’t wait; teach your child about saving and spending money now!  All it takes is one great role model—you!!

 

By: Jordan McMahon, Marketing Manager