KIDS SAVINGS

  • MONEY AND OWNERSHIP: GETTING KIDS TO UNDERSTAND THE LINK

    CATEGORY: kids & budget, kids & money, Kids Allowance, kids savings, teach kids about money

    Small kids who don’t understand money often take small items off shelves in stores—many small toys and candies, for example, are easy for a child to put into their pocket in a blink as you pay your bill at the register. In their minds, simply wanting something and having it be available is a good enough combination to take. Why Your Kids Are Stealing Accidental stealing happens mainly because kids don’t realize that access to something requires an exchange or trade. What they want, without necessarily knowing the label for it, is ownership rights to the product. In order to get those rights, they have to give up some of the money they have. It’s common for caregivers to emphasize… Read More →

  • WHAT SAVING REALLY MEANS TO KIDS

    CATEGORY: kids & budget, Kids Allowance, kids savings, Make money, teach kids about money

    Ask any financial expert what kids should learn early on about money and he’ll tell you to teach your child how to save. This is excellent advice, but the reality is that saving means different things to different kids. Your child might not see the saving task the way you do, and that translates into the need to be very conscious of how you go about engaging your child in saving strategies. Growth For some kids, saving money means only making it “grow”—i.e., your child can get latched on to the total saved. In his mind, the objective of saving doesn’t go beyond seeing how high that number can get, which can translate to money hoarding. To avoid this problem,… Read More →

  • WHY PARENTS NEED TO BE ON THE SAME FINANCIAL TEAM

    CATEGORY: Education, kids & budget, kids & money, kids savings

    When it comes to money, it’s not unusual for one parent to feel a little less experienced or skilled, or for one parent to have more time for financial education lessons. Even so, it’s well worth ironing out these wrinkles so you can be on the same team with your partner as your kids learn. Here are just a few good reasons to work together: Your kids might work the system. Don’t let them fool you. Kids are way smart. When you and your partner don’t work together with the family money, then your children might figure out very quickly how to work around what each parent says. For instance, if you’re a spendthrift and your partner is a big… Read More →

  • HOW TO USE A FAMILY SAVINGS JAR

    CATEGORY: Education, kids & budget, kids & money, Kids Allowance, kids savings, teach kids about money

    Saving is one of the first financial lessons that kids learn, and many experts promote the idea that the earlier children can start putting money aside, the better off they’ll be. The logical progression from this idea is usually to have your kid putting some money in a jar or piggy bank on a regular basis. (Even better, your child should have three banks or jar, one for saving, one for spending, and one for giving/charity.) A family savings jar can be just as important to your child’s money education. What Is a Family Savings Jar, Anyway? A family savings jar is just a jar or bank that everyone in your family puts some money into. Whereas the other jars… Read More →

  • A TASTY WAY TO TEACH KIDS THE DIFFERENCE BETWEEN GROSS AND NET INCOME

    CATEGORY: Education, kids & budget, kids & money, kids savings, money & technology

    Financial experts everywhere stress the importance of teaching kids how to budget, but they often fail to point out that doing this requires your child to learn about and understand two basic concepts: gross and net income. These two elements are not the same and need to be kept distinct as your child learns to work with his money. The difference becomes critical when your child gets ready to get his first job.   Basic Definitions Gross income is all the money you get within a given time period (usually a month). For adults, this usually comes from your work pay, but there are many other sources of income, such as lottery winnings, interest earnings, and the regular liquidation of… Read More →

  • WHY DOES TALKING ABOUT MONEY SCARE PARENTS?

    CATEGORY: kids & budget, kids savings, Make money, teach kids about money

    For a lot of parents, talking about money is just as bad—okay, maybe even worse—than talking about sex or using drugs. This doesn’t make a whole lot of sense given that money is so integral to daily living. After all, kids see you work, see you go to the bank, and need money for a host of items ranging from school lunch to car insurance. Why the taboo? Money goes beyond dollars and cents.  On the surface, money is just a collection of coins and bills that have different values attached to them. The way people choose to distribute those values, however, connects to distinct philosophies and beliefs. For instance, if you believe that it’s important to alleviate suffering, then… Read More →

  • WHEN SHOULD KIDS START SAVING?

    CATEGORY: give to charity, kids & money, kids savings

    Hopefully, by now, you’ve realized that getting your child to save is an important financial lesson. When a kid should start this process can be a little confusing, however, as families can have drastically different ways to approach it. Let’s break things down a little so you can decide whether your child is ready. When Brains Meets the Piggy Bank Effective saving requires that kids have some grasp of what money is worth. This is really a two-part concept. First, there is the aspect of understanding the difference between different coins and bills (denominations). This by itself requires the ability to visually distinguish between the different types of money and to count by any of those denominations. Your child might… Read More →

  • FUN WAYS FOR KIDS TO MAKE THEIR OWN PIGGY BANKS

    CATEGORY: kids & budget, kids & money, Kids Allowance, kids savings

    Not finding a piggy bank your child likes? Try these homemade alternatives! Soda/Water Bottle Bank Very carefully cut a slot in the side of an old soda bottle large enough for coins and bills to fit through easily. If the edges are sharp, cover them by folding some thick construction paper over each edge and gluing the paper in place. Some tweezers can help you pinch the paper into the right position through the slot. Let your child paint the bottle any way they like, or glue on some cloth or construction paper. For legs, cut out four squares from an egg carton and glue them on to the bottle. You can use construction paper for ears, craft eyes, and… Read More →

  • EASY WAYS FOR KIDS TO TRACK MONEY

    CATEGORY: kids & budget, kids & money, Kids Allowance, kids savings, teach kids about money

    One of the most basic skills kids need to learn when they start their financial education is how to track money. Without the ability to do this, kids can’t go on to more challenging tasks, such as making and sticking to a budget or saving for a goal. Lots of different methods are out there for money tracking. Making your kid great at the task is just a matter of finding which technique is best suited to your child and his situation. Here are some of the most common ways your child might be able to track money he receives or spends: Piggy banks or jars Piggy banks or jars are great ways for younger kids to track money because… Read More →

  • EXCESSIVELY CONTROLLING KIDS’ MONEY: ARE YOU GUILTY?

    CATEGORY: kids & budget, kids & money, kids savings, teach kids about money

    As a parent or caregiver, you naturally want your kids to be financially secure. As a result, it’s pretty tough not to hold some control over their money. To some extent, this is exactly what you should do, because kids can’t always rationalize maturely the way you can about saving, spending, and investing. As the saying goes, though, hold a flower too hard and you’ll crush it. Some parents take their financial control too far, never letting their child truly blossom. Control or Help? Excessive money control can often disguise itself as help. For instance, you might offer to write checks for things your child needs, rather than letting them get a joint bank account with you. Similarly, you might… Read More →