“How should I talk to my kids about money?”
“How can I help my child develop smart money habits?”
If you’re a parent, there’s a good chance you’ve asked yourself these questions, so we’re here to help!
But T. Rowe Price reported in their 11th Annual Parents, Kids & Money Survey that nearly half of parents said they miss opportunities to talk to their kids about money.
Teaching financial literacy is important, so keep reading to learn ways to help your kids make sense of those dollars and cents!
When To Talk to Kids About Money
Long story short–it’s never too early to start teaching your children financial literacy.
In her PBS Newshour article, Beth Kobliner reported that most 7 year olds already have established money habits!
“That doesn’t mean you throw in the towel after first grade,” Kobliner wrote. “Start wringing money lessons out in everyday life.”
In other words, it’s never too early–or too late– to start talking about money with your kids.
How to Talk to Kids About Money
Like most lessons, the best way to teach your child about money is through real-world experiences.
For example, discuss the difference between wants and needs at an early age.
Take your child with you to the grocery store and demonstrate the difference between wanting candy but needing fruits and vegetables.
It’s also important to teach your child about budgeting.
Have your older child help you plan a vacation. Explain that you have a certain amount of money to spend and let your child choose which accommodations and activities fit within your budget.
And your child should also understand everyday living expenses such as electricity, Internet, and water, so show your child your household bills and explain how you pay them.
How to Talk to Your Child About Saving Money
This can be tough–especially since most kids aren’t very patient!
You can start by letting your child earn their own money and encourage them to set savings goals for toys, games, or activities.
Explain to your child that oftentimes we have to wait to buy things we want and need–especially if they cost a lot of money.
It also helps to have a designated place your child can save his or her money. Younger children can use a piggy bank, but consider opening a savings account for your older kids.
Open a Savings Account
We recommend you open up a savings account for your child so they can gain real-world experience with money before they leave the nest.
Persons Banking Company offers a First Savings account that starts your child on the path to wise money handling.
The account has:
- No minimum balance required
- Competitive interest rate on all balances
- Free withdrawals
- Low minimum deposit to open – only $5
- No monthly fee
- It’s never too early, or too late, to start talking to your children about money.
- Real world experiences are often the best way to teach financial literacy.
- Teach your child how to save money by encouraging him to set savings goals.
- Open a Savings Account for your older child so she can gain real-world experience before she leaves the nest.
Don’t forget! Persons Banking Company offers a First Savings account for minors under 18. You can check it out here.