Piggy Banks and Savings
I must admit, I'm a stasher of money. I have various cookie jars and coffee cans to collect errant bills and change. I'm constantly sweeping change off my husband's bureau. I've told my family that any money they leave in their pockets becomes mine when it hits the laundry. Fair enough. I'm trying to get my kids to use the piggy banks all of them received as baby gifts. And now they do. Stashing coins and small bills in their banks teaches them not only to keep track of their money but to save too. Once they've amassed a good amount, we visit the bank.
Most banks have special programs for children's savings accounts. Set one up and let your child participate. Help them learn to count their money, roll coins if necessary, and write out deposit slips. Even let them add their signatures. Praise your kids after they make their deposits. All kids love playing grown up and it's really grown up and cool to have a bank account. Show them the monthly bank statements; explain interest accruals, and that they should keep adding to the savings. I can still plainly see the pride on my daughter's face when she realized she was the proud owner of her very own bank account.
Spending their Own Money
Your children might be tempted to spend that allowance they earn each month on junk food, cheap toys, or games. This should be moderated by Mom and Dad. I know I can't be the only parent who's bombarded with “I gotta have that” when we visit the mall. One time, I decided to let my daughter try spending her own money. Imagine her shock and horror when her $10 only bought two items at Claire's? It was pretty funny but a great lesson for her. She was proud of her extremely, well-thought-out purchases (the mental debate took forever). And humbled as she finally realized just how much a simple item can cost. Lucky me, I don't get the constant demands when we are shopping anymore. Try having your kids bank their allowance every other month. This bimonthly allowance spending should alleviate any shopping urges they might have. Of course, they may forget shopping and just bank all their cash.
CDs, Bonds, and Stocks
Almost every kid receives bonds, stocks and CDs as gifts at one point in their lives. They really have no clue what these gifts are nor how important they are for their future. My daughter loves getting those little envelopes at holidays, thinking they'll be filled with gift cards or cash. The poor thing got quite flustered a few years ago when out popped a U.S. Savings Bond. She knew it was money of some sort cause it looked kind of like money. I explained that it's money for the future; for college or a car. I then explained about the face value versus the real value of bonds. I also explained that her college funds are the same. We've put money away that will grow over time because it's invested carefully. I took her with me to stash her bond away in a safe place. Occasionally, she asks to take a peek at her bonds.
Children need to learn the lesson of saving money. Our children are bombarded daily by our fast-paced, material world. Learning to save and appreciating money is a step towards teaching them self control but also pride in their own budding ability to plan for the future.
