From piggy banks to retirement funds… teaching our kids to manage their money is just one more of the many perks of being a parent. When you see the sophisticated advertising aimed at our kids persuading them to buy everything from breakfast cereal to this Christmas’ “it toy”, it is no wonder that the number of Canadians who are living with enormous debts and little savings is growing. But how do you teach kids the value of money and the importance of savings? What is the right amount of allowance? How do you instill generosity in children?
Here are a couple of quick things you can do:
1. When giving children an allowance, give them the money in denominations that encourage saving. If the amount is $5, give them 5 loonies and stipulate that at least $2 be set aside in savings.
2. Have children set a goal for their money: Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Goal-setting helps children learn to become responsible for themselves
3. Involve children in planning and saving for family vacations
4. Allow children to make spending decisions: Whether good or poor, they will learn from their spending choices. When a poor decision is made children can experience the consequences and you can talk to them about spending pros and cons, doing research before making major purchases, waiting for the right time to buy, etc. Better they make a poor decision now than when they have their first credit card!
5. Establish a regular schedule for family discussions about finances. Too often we feel uncomfortable openly discussing money and that means many children have very little information about how family finances work.
For more information about teaching kids about money, you can go to upcoming free workshop:
Raising Money-Smart Kids
Connaught Library, 3435 13th Avenue, Regina, Sk
Wednesday, October 5 6:30-7:15 pm
Are you a parent or grandparent wondering how to teach your kids about the value of money at an early age? Learn all about how to raise money-smart kids including savings and allowances, creating money habits, money safety, today’s banking options and more. A children’s storytime for ages 4-8 years will be held upstairs during the program to allow everyone with little ones to attend! Pre-register by calling 777-6078.
Do you have tips to share? I would love to hear them.