Teaching your kids the value of a dollar.

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The simplest way to teach children the value of a dollar is to show them how it affects their life. Although, there are ample games, children’s personal ATM machines, apps, and books that focus on the subject, you will still be their first teacher. Your saving and spending habits will be apart of their memories, even at an early age. When your kids begin to understand money, they will begin to feel empowered... 

Quick things to do:

1.     When you’re in the store give them a few dollars and let them make decisions on what you all need to buy. Make it a game to see if they can stay on task with their spending.

2.     Give them an exact amount of money each year and let them do their own school shopping. This will help both of you determine if they’re money is being well spent and you all can track improvement. This is also a good way for parents to stay on their budget, so they are not giving out money continuously.

3.    If your child doesn’t already have a bank account, set up one, but take them to the bank to open it. Most personal bankers are more than willing to explain to them simple accounting methods. Your goal is for your children to feel comfortable not only going into the bank, but also, filling out deposit and withdrawals slips. Depending on their age, you should get them a checkbook and/or debit card that you can also manage. Most importantly, be sure to explain to them the difference between credits and debits.

4.    Make the money conversation a regular part of your families every day communication. You should continuously engage your children on financial matters that affect them. Start a family money board and set exciting goals for everyone to hit! I understand some parents want to keep their children at arms length when it comes to money obligations. However, keeping them abreast to a few things, such as, the cable or grocery bills, will help give them a realistic view on how money works.

5.    Talk to them about investing and what it means to build wealth. You want them to start thinking about opportunities on how they can invest in themselves, whether that is through higher education or starting a business.

 

Author: Dana L. Wilson, Managing Partner, Papillon Financial

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