This is a good way of allowing them to see that maybe the budget doesn’t allow for a “want” like soda this week, but it could be in the budget next week.Īdditionally, visiting a bank or credit union is a great way for kids to see and understand where their money is being kept. Let them help you stick to a food budget. Before you head to the grocery store with your child, write down a budget. For example, when a child is old enough, let them sit down and balance your checkbook register while you are paying bills. For most children, seeing things on paper and writing them down helps. It is important to make spending more concrete for children. How can we explain the abstract aspects of money to our children? This can be a little hard for children to comprehend. Many of us use debit and credit cards while shopping, rather than physical money. Playing with pretend cash registers, money and ATM machines are all good introductions for much younger kids, such as preschool-aged children. ![]() The concepts of dividends and interest are very exciting for kids at this age, and can be a good entry point into putting your money in an account. We also should talk to our kids about how to save, whether in a piggy bank at home or in an account at a financial institution. For this age group, that may mean differentiating between needs and wants - meaning, what are the things that you need to survive (water, food, shelter) versus what are things that you simply would like to have, such as a bike, a book or a toy. How should we introduce our kids to money concepts?įor kids in the lower elementary grades, maybe second or third grade, it is important to teach the very basics. This will help them determine if the item is something that they really want, or if it's just something that looks shiny now. Ask your children to use some of their own saved money, or to save money toward a toy or a book they are interested in. Cite big events such as birthdays and holidays as times that we get things, rather than purchasing something every time they go to the store. Use these opportunities to talk to your children. Most children go through phases of wanting everything when they go to the store with their caregivers. How should parents talk to their children about money? Martha Kamp, community relations manager at CEFCU, provided some guidance about best practices for teaching money management and personal finance to kids. ![]() We probably have memories of our first allowances, bank accounts or exciting money gifts from relatives.Īll of these first experiences with finance are important building blocks for our children, and they lay a foundation for how our kids will approach the topics of money, spending and saving as adults. Even more so, we probably have some sense of how our parents felt about money, and we may recall how they spoke about it in our presence. Can you remember how you first learned about money?įor many of us, thinking about our earliest money memories may bring to mind lemonade stands, car washes or door-to-door fundraisers.
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