Money Tips for Kids

• Very few topics affect us on a day-to-day basis like money, so there are endless opportunities to provide mini money lessons to your children throughout the day.
  
• By taking advantage of these everyday “teachable money moments”, you’re creating an ongoing dialogue with your child that will help instill important and positive financial values and attitudes.
  
• These everyday money lessons will be a foundation to ensure that they have a lifetime of good financial habits and attitudes.
  
• As soon as the opportunity arises, and you think your children can understand and express an interest, they should be taught the value of money and how to respect it.

Specific examples of common opportunities to teach children about money:

• Allowances: Sit down with your child and encourage them to identify ways for them to earn money through work (e.g., put away their toys, make their bed, etc.) – help them make a list and keep a chart of all the chores they complete (chores should be appropriate for age). The lesson is that money does not grow on trees – there is a value to money – it is earned through hard work.
  
• Shopping: Make a grocery list and get kids to cut and organize coupons with you – then go to the store, and have them match the coupons with the items on the shelves – talk to them about a “brand” item vs. generic – as a reward, give them some or all of the money saved from using coupons. Teach them about the importance of comparison shopping and waiting for items to go on sale. Teach them about the importance of wants (e.g., chocolate chips cookies and latest “fun” cereal) vs. needs (food staple products like milk, eggs, bread, etc.)
  
• Celebrate saving: Discuss with your kids an appropriate and safe place to keep their money (e.g., piggy bank, plastic container, wallet, etc.). Put a picture of the item for which they are saving on the “bank” to reinforce visually. Track the child’s progress with a colorful chart that can be posted on the refrigerator or bedroom door as a reminder of the child’s achievement. Give them recognition for their discipline when the savings goal is reached – consider matching the amount if the goal is achieved within a certain time limit.
  
• Going out to eat: Compare menu items and prices (e.g., ordering water vs. soft drink). Show them the bill at the end of the meal, talk about tips and taxes. The lesson is about double-checking to make sure you know where you money is going and that the bill is correct, and that there is no such thing as a “free meal.”
  
• Withdrawing money from the ATM: Teach them about the “invisible money” at ATMS and how it really works – it isn’t free – you had to earn it and save it (e.g., how it is connected to a bank). Take this opportunity to take a tour of a bank or credit union (include a visit to the vault and your safe deposit box if possible) – explain how a bank works.