It's EVERYWHERE... it controls the ENTIRE WORLD ... it's MONEY.
Teaching your children about money now, while they are young, is a crucial skill that will follow them into adulthood.
We all need it, we all want more of it and when we do have an "excess" of it, we don't really save it the way we should (some of us)... So, how then, can we teach our kids to save money and help them understand the importance of doing so!?
GIVE AN ALLOWANCE Teaching our kids to SAVE THEIR MONEY is impossible unless they have a way to EARN IT. Allot a small amount each week, increasing as the child gets older and is given more responsibility.
LET THEM DECIDE HOW TO SPEND If they want to spend their money... LET THEM. It's the only way they will learn what it means to not have it when they need. Just remember to use it as a learning opportunity in the future!
CREATE A JAR SYSTEM! The goal of this is to teach the importance of responsibility vs. playtime... use it as an opportunity to show them how to save for Prom, etc. or how to have extra money here and there (Play Fund) for just ice cream or something.
Have TWO jars for the family... a "Play Fund" and a "Planning Fund". The "Play Fund" will be used for any outings, moves, dinners, etc. and the Planning Fund is to be used to saving for large payments, vacations, debt reduction, etc. Have your kids do the same exact thing!! When they want a new toy or want to go somewhere fun, they have to reference their own "Play Fund" and if they need to replace a cell phone or something they weren't planning on (hence the name), they can use the "Planning Fund" jar.
PLAN TO MATCH! Hey, it works with savings accounts and retirement funds for adults, right? Why not for our kids, too? Ask them their goals (annual savings goal, a big purchase, etc.) and agree to match a certain percentage or dollar amount, based on their "deposits". As long as they invest and save, you will match! What a great way to show them the importance and significance of matching contributions.
CREATE A CHART! Kids LOVE graphics and will really appreciate the huge poster board on the wall leading up to their goal!! Each time they "deposit into savings", color in a little bit on their progress chart, etc. and when they hit their goal, maybe you can throw in an extra $20 as a bonus!
PLAY MONEY GAMES Teach your kids about smart investments and frivolous spending with games that involve play money! "See, if you would have bought houses/hotels for that property, I would be paying you 10x this amount," or "If you would have waited until you had more money to buy those houses, then you'd be able to pay me this rent and wouldn't have gone into the negative."
What ideas can you share with us? What works for you and your family? Email me at tonig@macaronikid.com to share!
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