Teaching Personal Finance to Your Children

Your daily routine provides a number of teachableknow that money is not just for spending. Every so
moments. They grocery shop with you, they watchoften you can sit down with them and see how much
you go to work, they love the spending money youthey've accumulated and tell them that this is money
give them, they listen to how you feel and think aboutfor a future goal. A toy, a store trip, college or
money. All impressionable moments they keep withwhatever other goal you decide with them.
them. Give them a healthy respect for money. It's notLetting them have their own bank savings account is a
the end all and be all, however, it's necessary togreat way to teach them financial responsibility and
manage it properly in order to function in a healthybalance. Let them make the deposits to their savings
way.accounts. Help them fill out the deposit slip for their
If you don't already, let them know why you're going todeposit. Take the time and let them stand on line in the
work. Let them know that it takes working day in andbank and make the deposit to the account. When their
day out to make money to pay for everything in thestatement comes in the mail give it to them unopened
home. The food, the video games, the clothes etc.so they can open and read their monthly statement.
Seeing you get up every day and going to workGive them a folder for keeping track of all their
provides the impression of financial responsibility thatdeposits and statements.
lets them know that they too eventually will work forChoose a consistent amount for them to contribute.
an organization or themselves one day and have toFor instance, if you give them $9 spending money, give
be consistently responsible.them $1 for their savings account. The dollar amount is
This is especially true on the rough days. The rainynot the important part. What is important is that they
days, the semi sick days, the minor headache days,learn the behavior of consistently saving.
the bad mood days. Let them know that it's thoseTry to choose a bank that is close to home or school
days that you must get through to be financiallythat way at some point during the week you can
responsible. It obviously also gives them a healthy workmake time to visit the bank for the savings contribution.
ethic but it's part of the necessary process for themTime constraints are a serious challenge however, try
to consistently work and bring home a steadyyour best to keep these appointments. Remember,
paycheck to pay bills.traditional school classes are not teaching this kind of
Piggy banks or child friendly safes are a great way formoney management behavior so this is the role that
them to get started saving when they are very young.you can play to fill that void. They have to learn this
Let them put their spare change in them so they canbehavior to function well in the real world.