Explaining Finances to Your Child
You’ve just gone grocery shopping & prepped a full meal, waiting at home. Low and behold you’re coming up to the infamous fast food chain! Before you can divert your route you hear:
“Mommy can we have-…”
*Cringes from the front seat.*
Instead of just telling them no anytime you pass the “Golden Arches” in the car, why not turn this moment into something teachable? Of course kids will be kids. They do not understand nor do they care about the value of a dollar…but I bet it’d help you out mom (and your little one in the future)to start young teaching them how to spend, save and essentially manage money at a young age. Everything is relative to the age of the child and their personality of course. Who knows your child better than you?
Can you think back to when you first really understood the value of a dollar? I, personally do not ever recall learning about that in any math class until college. And even then I cannot recall any educational institution teaching the importance of money management, having good credit, how to do your own taxes etc…
My mother instilled the importance of finances during my childhood days, and I intend to do the same with my own daughter.
Today, my daughter asked what was on the day’s agenda. Today was errand day. Laundry, food shopping, clean house. This was no problem since she loves to help! Next thing I know, she’s dashing out of the room, only to return with a birthday card given to her with some money inside.
“Here mommy, we can use this in case we need money for my laundry” (There’s not a washer/dryer in-house)
The lightbulb went off in my head!
“Ok baby, let’s start my counting how much we have…$18…and I think you will need $3 for laundry (wink, wink) How much money will you have left?”
After thinking and counting, “$15” she says.
“Ok so what we can do with the $15 is save it.”
I took this opportunity to explain the different types of bank accounts and their purpose; Starting with the basics– There’s her Child to Cherish Piggy Bank for Baby or Little Girl Bundle Includes Card and Penny to Save, Paper Bird Design piggy bank, a checking account and a savings account. So we could better understand, we went to our nearest branch together, and although she’s only six years old now, we went through the process of “depositing money.” This made saving money a bit more tangible. She was able to see first hand, HOW, money is put into the bank.
A very rewarding bonding experience and to her it became fun!
We would love to hear how do you explain finances to your children. Write us. Leave a comment. Tell your #MomStory.
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