Each day, parents face choices on how to mold their children. Everyone seems to have an opinion on which of those choices is helpful and which are harmful.
We worry about the foods we feed our children, their sleeping patterns and what sort of diapers we should use. As they grow, we’re concerned about whether they hit those significant milestones such as rolling over, walking and talking at the right ages. Then comes school and the academic and extracurricular activities to pick from.
In the midst of being sure that our kids know how to read and write and find their giftedness both inside and outside of the classroom, we often skip over teaching them the vital lessons of life. While travel teams can coach our children toward personal discipline and music lessons enrich their hearts and souls, we all know we need to teach kids how to take care of their basic needs, too.
Life skills such as washing laundry and changing a tire don’t seem as much fun to pass along to our offspring. After all, no one gives out ribbons or trophies for folding your own underwear (maybe we should?). However, learning how to function in the world should rank in what you daily pass along to your kids. When it comes to money, there are plenty of ways to impart wisdom and foster independence in young lives.
Celebrate opening account
My grandma Beulah gave me my own bank account for my 10th birthday. She deposited a small sum in the bank and wrapped up the brown savings book for me. I can still remember what it felt like in my hands. Each time, I made a deposit, the teller in our hometown bank wrote the balance on the yellow lined, small notebook.
While banking has changed over the years, it’s still important to celebrate a child’s first bank account. Build up the event as an important step. Help your little one count dollars or roll pennies. Guide them through the process of setting up the account along with the help of the bank employees, but don’t do all of the work or the talking. Allow your child to ask questions and to be a part of the experience.
Help them track their saving and spending through online services or by using a checkbook register. Don’t assume that they understand anything about the process. Explain and then over-explain each aspect. And if you don’t know an answer to a question your child has, ask someone so you can learn, too.
Select a short-term savings goal
Saving without a purpose doesn’t usually create excitement toward a goal. Help you child select a worthwhile short-term savings goal. For younger children, this looks like an item $25 or less. For older kids, maybe $50 or less.
Do research on where to purchase that item at the lowest price. Don’t forget to have your child look for coupons. Cut out a picture of the item and hang it somewhere where you all can see it on a regular basis. Help your child work around home or find a job somewhere in your community to begin making money to save. Once they’ve reached their goal, purchase the item in a timely manner. Then, set a new savings goal.
Don’t bail
It’s so tempting to make up the difference when our kids arrive at the register to discover they don’t have enough money to foot the bill. While every parent can choose to exercise grace and generosity, try not to make a regular habit of swooping in with rescue cash. One of the more difficult lessons of learning to manage money well is realizing money is finite. There are limits to what we can and can’t purchase.
Without being cruel or mocking your child, explain in age appropriate terms that they will be unable to buy the item they wanted on this trip. Help them brainstorm ways to make more money so they can reach their goal quickly.
Put your child in charge
When they deposit money at the bank, have them fill out a deposit slip and speak to the teller. If your child is making a purchase, charge them with counting the money at home before you leave. Allow him or her to push the cart. And let them speak to the checkout clerk and pay for the item, too.
Some kids will find this process natural and fun, while others will struggle to muster courage and confidence. No matter how challenging the experience might be, realize that each time your child interacts with money, they’re learning lifelong skills.
Impart other money management lessons to your children — from learning how to be generous to saving for emergencies, from staying away from debt to the discipline of saving for goals. Even when we don’t teach our children about money, they learn about it (in both positive and negative ways) from the influences around them.
