With the convenience and security of digital banking, making money an actual tangible commodity to kids may be difficult. Think about it, unlike your parents you probably don’t carry around a lot of cash. It’s likely you use debit, credit, and cards in your digital wallet to pay for things. Making the physical connection of money to your kids will help them understand how to manage finances. Here are some tips on how to make money real to your kids.
Take Them to the Bank
Let’s face it, you probably don’t go to the bank that often. With the ease and security of direct deposit and online transactions you know you can do most of your financial business either on your desktop or on your mobile device. But think about taking your kids to the bank. There you can show them how to make a deposit, a withdrawal, and show them how the ATM works. This will help your child understand that their money isn’t just on a computer, it’s moving through a living process.
Pay Bills with Them
There’s no dose of reality like paying bills. Now you might have many if not most of your bills auto drafted from your account, there are probably still bills you get in the mail and have to pay. Explain how you pay your bills and try to connect a bill to a service they enjoy. You could use a streaming service bill as an example. Discuss what happens if you pay your bills late or not at all. This will help them to understand the importance of paying on time.
Let Them Earn Money
Chores and allowances are a classic tool to teach kids about money. Your parents may have even done this with you when you were a kid. Assigning chores and putting a dollar amount to them is a good way to start teaching your kids about setting goals and budgeting. By taking the next step of showing them how they can spend or save their money, will go a long way when they’re older.
Remember, it’s never too early or too late to talk about money with your kids. Don’t be afraid of some of the questions that might come out of these discussions. Experts say the sooner you discuss finances with your kids the more likely they will reach their financial goals as an adult. And if you don’t know the answer to any particular question, you can always research it together.