April is Financial Literacy Month, a time when we recognize the importance of sound money management. There is no better time than the coming months to talk your children and grandchildren about the importance of managing their money. So, what are the things you can discuss?
Talk to your kids about money!
Even at a young age, kids should understand how you’re getting the services and products you’re receiving. Your children see you pay for things in a variety of ways, from cash to smartphones. Parents.com suggests that one way to do this is to “turn your day-to-day activities into learning experiences.” Trips to the bank, store, or the ATM machine, for instance, can be a perfect opening for a discussion about your values and how you use money.
Managing money means making choices
Children also need to know money is finite. That means money used to purchase one item won’t be available to purchase other items. What’s an easy but effective way of teaching this lesson? Involve your children in making everyday choices. The grocery store is a natural place for these lessons. Kids can be asked to decide between two items, such as two varieties of cookies, with the explanation that money for both is not in the budget. They learn very quickly that when it comes to spending money, choices — sometimes difficult ones — are part of the territory!
Money can grow with time.
A coin jar provides a simple, yet effective illustration of this principle: Money saved, and eventually invested, has the potential to grow… and significantly over time. Older children can benefit from help with starting a savings account, where they can watch their money grow, and a checking account, where they can see how purchases affect the money they’ve earned.
Teaching smart money management isn’t about a single conversation, it’s all the small comments you make and questions you answer every day. Even if you don’t think you’re teaching, your kids are always watching and learning.
Learn more on the www.CrestSavings.Bank Financial Literacy page.
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