What is Money? Kids relate easier to the concept of money when they can hold and feel it. So let children play with coins and explain to them the value of a penny, nickel, dime and quarter. Do the same with paper money, and then give them quizzes to identify the currency. Show them common items, such as a can of soup or candy bar, explaining the costs of each. This is a simple way to introduce the value of dollars and cents in a tangible way to a child.
Earn as They Learn
Their First Savings Account Children’s first savings accounts should be in the home, so they can see and use them often. When kids receive money from completing tasks or for birthday presents, put the money into three small containers or piggy banks labeled “saving,”“spending” and “sharing.” As the savings increase, get larger containers so the children can see the “growth” of their money. Create a simple budget by tracking the money on a chart. Use the “10-10-10-70” system developed by Lori Mackey, founder of Prosperity4Kids. Every time a child gets money, have him save 10 percent, invest 10 percent, give 10 percent and live off 70 percent.
Start a Savings Account Taking the savings out of the home and putting it into a bank account is the next step in a child’s financial future. Like many banking institutions, First National Bank Texas has a “Kids Count” for customers younger than 21. A Child Savings Account typically has a low- or no-minimum balance requirement. This type of savings account usually offers a low interest rate, which is a great way to teach children about compound interest and how their money can earn more money.
Play Free Online Games Save!, the downloadable game from Mass Mutual Financial Group, teaches kids how to separate “iWants” from “iNeeds.” The game is an instructional tool to teach children the value of saving money. Players can run, jump and dodge their way through a fantasy world MARCH 2014 TEX APPEAL
Raise an Entrepreneur Teaching children how to build their own businesses will reinforce good savings habits. Lemonade Day is a free community program in the Killeen/Fort Hood area sponsored by First National Bank of Texas. It teaches youths how to start, own and operate their own business – a lemonade stand. “Lemonade Day educates youths on the value of entrepreneurship through basic lessons on goal-setting, money management to include budgeting and savings through an account at a bank,” said Amanda Stephens, customer experience project manager at First National Bank Texas and First Convenience Bank.
“Don’t overlook taking kids to thrift stores and garage sales for used products.”
Children love to help mommy and daddy. It gives them a sense of accomplishment, so use their initiative to teach them about working for an allowance. Set a value based on each year of the child’s life, from 50 cents up to $1 per year per week. Children will learn the value of money faster when they work for it, and assigning tasks such as taking trash out, picking up toys or making their beds is a great way to teach them that value. As the children grow older, the allowance increases as task get more difficult, such as raking the yard and washing the car.
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collecting all the virtual money they can while avoiding impulse buys – “iWants” – before time runs out. Free games that teach children about finances and savings, like “financial football,” are also available at practicalmoneyskills.com.
Take Savings Adventures Often the only difference between the name brands and the generics is cost, because the quality of generics is just as good. Jessica Jackel, a Fort Hood military wife and mother of two young boys teaches them the value of generic items when they shop.