Money Talk by Example
Young ones at home? If your child is old enough to ask you to buy them a toy, they are old enough to start learning basic financial lessons. The best teachable moments come in everyday moments - usually while shopping or viewing an advertisement. Look for opportunities to talk about money, read books and play games that involve spending wisely and saving money.
Here are a few examples to help you start:
While shopping
Tangible items will provide good examples of needs and wants. During a grocery store visit, you can show that an apple is a good source of energy and a candy bar won’t make them feel full, in fact, it might make them feel a bit irritable. An apple comes from the earth. A candybar, from a factory.
Explaining your pay check
For older children, you can talk about how the work you get paid to do helps to pay for your housing, meals and clothes, and how you like to set money aside to save for costly emergencies, future college expenses, vacations, etc.
Paying bills
Show your child a bill and then talk about how you are able to pay for it. Talk about how you will pay for it: by cash or from your digital bank account. Did you know that some young adults ask for money to be put on their debit card? Explain how this money comes from your bank account and your funding source (eg. your pay check). Be sure to cover late penalties and emphasizing the importance of paying bills on time.
Embracing chores
Assign tasks and give them a monetary value. Your job is to pay them fairly and on a routine basis after the tasks are completed by the child. Discuss ways to budget and encourage them to divide each "pay day" into spend, save, and share categories. Help your child to set a goal, such as saving for an experience that want to enjoy.
Planning a get-away
Set aside a family savings goal that involves your children. Figure out the cost and discuss ways everyone can contribute to reaching the target by vacation day.
Show them the money
You likely don’t want to show your child all of your accounts. However, you can show them how financial transactions flow in and out of your accounts. Show your child how to set a financial goal in PFM within digital banking. Explain how saving money generates interest in their savings account, and how different banks help people differently. Banks are not the same. They will be happy to learn that you are making a difference by promoting clean energy by keeping money with greenpenny.
Plus, who doesn't love a child with an inquisitive mind? Way to be an awesome teacher!
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