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Early Money Management Habits for Kids
Early Money Management Habits for Kids
There are many events in children's lives when good money management
skills can be fostered. By constant repetition, these skills will develop into
life-long habits. Consider a few opportunities to reinforce messages:
Piggy Banks – The First Lesson in Saving
The arrival of a child's first piggy bank teaches at an
early age that pennies, dimes, and nickels can add up to dollars pretty quickly.
Weekly Allowance – Spend Some & Save Some
Help children see the value of spending a little now and
putting some aside to spend later. Giving some to a worthy cause can also be
suggested. If you provide your children with an allowance, you can start them
off right by requiring them to budget and save a portion of it.
That First Job – Time to Open a Bank Account and
an IRA!
Ask a young person what he or she will do with the income
from their first job, such as babysitting or doing yard work for the neighbors.
Encourage them to think about their spending and savings options. Many teenagers
today make enough money to open their own checking account or a joint one with
their parents. It's even possible to open a retirement account.
The Big Things They Want – What it Takes to Buy
Them
So they want the latest game console or MP3 player. Or
maybe it's a special school trip or even a car someday. Saving for these takes
time. Now's the time to talk about being disciplined to save for what we want
and being realistic about our needs and wants.
Protect Your Financial Information – Don't Give
Away Account Information
Tell children that bank account numbers are secret numbers
and should never be given away. Never "mail" letters by putting them into your
own mailbox for the postman to pick up. Sometimes thieves look for secret bank
numbers in outgoing mail. Tear up or shred any papers with your secret bank
numbers, rather than throwing them in the trash. Tell kids that believe it or
not, thieves will even go through your garbage to steal your financial secrets.
See also:
Downloads:
 The Money Talks newsletter series contains tips, practical advice, thought-provoking ideas and age-appropriate activities to bring money lessons alive for young children, tweens, teens and young adults. This newsletter is designed for parents, grandparents and other caring adults to help them teach children and young adults about money.
- Learning About Checking
Accounts - A free, downloadable manual from Deluxe with how-to's and practice
exercises
Content provided by the American Bankers Association unless otherwise noted. © Copyright 2006 American Bankers Association, 1120 Connecticut Ave NW, Washington, DC 20036. All rights reserved.
(1) "Learn About Checking Accounts" is a PDF document provided by Deluxe Financial Services, Inc. © Copyright 2005
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