April 27 is Teach Kids to Save Day!
Do you feel like you want to teach your kids about money but don’t know where to start? Or maybe you don’t know the right age to start having conversations about money? Well today is the day! Now is a great opportunity to open the conversation so you can help your kids develop healthy short- and long-term financial habits and skills.
If you’re not sure where to start, I highly recommend checking out the video below from First Federal Lakewood that focuses on talking to your grade-schoolers about money. Basically, by elementary school, most kids have some understanding that money can be used to buy them what they want. The “want” part is a great jumping off point to start the conversation! Is there a toy or a game they have their eye on? When kids learn that saving their money can help them get that thing they really want for themselves, they’ll start to feel how saving money works to get them what they want!
But how do they get money in the first place? Birthdays and holidays are one way, but how can they earn money? This brings us to weekly allowances! An allowance is a practical way to introduce your kids to the concept of earning and managing their own money. When they receive their allowance, will they spend it right away on something small and have to start over from $0? Or, will they set some of the money aside each week until they have enough to buy what they really want? The gratification of finally earning that coveted reward can be such a big stepping stone for young kids to start understanding the power of saving their money!
Next, tie their allowance to doing small tasks or chores around the house. By truly earning their allowance, kids learn the value of money in a way they otherwise wouldn’t. Completing household tasks in exchange for their allowance helps them really appreciate the money they earn each week.
For even more tips, the First Federal Lakewood video below about the top five things your kids should know about money is another great resource. Aside from diving more into saving and allowances, it also discusses teaching kids the power of generosity, as well as talking to your children about the difference between wants and needs (something even parents need to remind themselves sometimes!). These concepts may seem big for elementary schoolers, but the sooner you start talking to your kids about money, the sooner they can start building their own healthy financial habits.
And if you’re looking for a fun and interactive way to start the conversation with young kids who appreciate a hands-on approach, make sure to download First Federal Lakewood’s 2023 Activity Book! This pirate themed coloring book makes money concepts fun and engaging for kids of all ages (and parents too!) Best of all, it’s completely free. Just download and print the book, then enjoy a fun and creative opportunity to spend some time focusing on the building blocks of good financial habits with your kids.
Teaching your kids about money can feel like a big task. But by using the concept of earning an allowance and saving their money until they can buy something they really want, you can make the process both engaging and rewarding for kids of all ages!