Ideas to Help Your Children Understand Budgets & Saving
July 2, 2020
Teaching your children about money and budgeting requires patience, creativity and time. While it may not be easy, it is important that your children know how to manage their money successfully as they get older. Taking the time now is sure to pay off for their future.
Below are a few ideas for teaching young children about finances to get you started:
Give Them a Clear Jar to Begin Saving
The piggy bank is a great idea, but it doesn’t give kids a proper visual of saving. When you use a clear jar, they can see the money growing. Yesterday, they had a dollar and five dimes. Today, they have a dollar, five dimes, and a quarter! Help them dream about the money they will have in the future and make a big deal about it growing each day.
Set a Good Financial Example
A study by the University of Cambridge* found that money habits in children form by the time they’re seven years old. Little eyes are watching you. If you throw down a credit card every time you want something, they’ll eventually notice. Or if you frequently argue with your spouse about money, they’ll pick up on that too. Set a good example for them, and they’ll be much more likely to follow it when they get older.
* Read the full study HERE
Show Them That Everything Costs Money
It is essential to do more than tell your child, “That toy costs $5.” Help them grab a few dollars out of their jar to take with them to the store, calculate what they can afford, and physically hand the money to the cashier. This simple action will have more impact than a five-minute lecture.
Give Commissions, Not Allowances
Don’t pay your kids money simply for existing. Pay them commissions based on chores they do around the house like taking out the trash, cleaning their room, or mowing the grass. If your teen constantly wants money (and they usually do), then help them find a local job that doesn’t get in the way of school or time with family.
Stress the Importance of Giving
Once your child starts making a good bit of money, be sure you teach them about giving back. They can pick a church, charity, or even someone they know who needs a little help. Eventually, they’ll see how giving doesn’t just affect the people they give to but feels good for the giver as well.
Contact Texas Gulf Bank at 1-800-467-7216
to discuss account options for your child.