Helping children understand money habits
Learning to save money is as important as learning to spend money wisely. Children who learn good money management habits are more likely to make sound financial decisions as adults.
Preschoolers need to be able to see their money to understand the concept of saving money. Coins collecting in a piggy bank or a glass "savings" jar help them to understand saving for something in the future. For young children, the three jar method helps them visualize where their money is going. Gather three jars; label one jar for saving, one for sharing with a charity, and the third for spending. All the money the child earns or receives is split among the jars.
Help your child decide what they will save for. Talk to your children about things you are saving for. It is good for children to know that adults have to prioritize and often wait for some purchases. Anytime you earn, move, spend, donate, borrow or save money, you have an opportunity to teach your children how the money world works.
Set a Goal. Preschoolers need to have an age-appropriate, realistic, short-term goal for a specific want. My son saved diligently for a fishing pole decorated with a Disney character. All those weeks of saving just made it more treasured when he was finally able to buy it.
Plan. Help your child make a plan for their savings. Guide them through a simple math situation to determine how long it will take to save the needed amount. For example: the fishing pole costs $10.00. If you save $1 each week for 10 weeks, you will then have enough money to buy the pole. This helps children learn to plan, save and wait for things that are important to them.
Elementary-aged kids can open a savings account in a bank or financial institution. This helps them learn about earning interest and how money can grow and work for them. Many banks have special accounts for children that can be opened with a small amount of money. Ask if there are lower minimum deposits for children. Are fees waived for children? How often is interest paid to the account?
Take your child to the bank to set up an account in their own name and deposit their money. This age group can begin to save for longer-term goals. Have them write down their savings goal. Post the goal where the child can see it. Seeing the goal frequently helps motivate the child to continue to save. If your budget allows, encourage saving by matching part or the entire amount saved.
When teaching children about money, use the same parenting techniques as for other life skills:
- Guide and advise rather than direct and dictate.
- Let children have responsibility for their decisions.
- Encourage and praise rather than criticize and rebuke.
- Allow children to learn from successes and mistakes.
- Set limits and consequences together.
Children learn lessons when they are allowed to make mistakes. When they impulsively spend their savings on something other than their goal, don't rescue them. Allow them to learn that savings take time to build. When children spend all their money on candy and have to miss out on something else, they learn to spend their money differently in the future.
Teaching your children how to save, along with other money management skills, is a very important parenting task. You'll be glad you took time to teach your children!
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Active Kids - Walking
Speaking of MONEY . . . do you know a GREAT money saver? It is Walking!
With gas prices on the rise, our cars are a huge expense. To save on gas money, start a walking program for your family. Encourage your children to walk or bike short distances with you instead of driving them everywhere. Not only will you save money, but you'll become more active too!
Eating out can be expensive, both for your wallet and your health. Pack a picnic and walk to a nearby park. Bring along healthy deserts like fresh fruits and veggies, nuts or yogurt. Healthy, outdoor play will most likely stir up an appetite.
Encourage physical activities for your children that don't cost a lot of money. Physical activity is not only fun, but it is healthy too.
Information provided by America On the Move. Visit: www.americaonthemove.org.
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Healthy Kids - Healthy Home
Some of the most serious health problems for children may start at home.
- Is the air in your home clean and healthy?
- Do your children have breathing problems?
- Is your tap water safe to drink?
- Do you keep poisons where your children can reach them?
The answers to questions like these will help you learn if your home is safe and healthy. In a colorful, easy-to-read 56 page booklet, Help Yourself to a Healthy Home, you will learn to identify safety risks and hidden dangers in the home environment. Each of the nine chapters includes action steps to help you find problems and suggestions for ways to correct them.
Topics include indoor air quality, asthma and allergies, mold and moisture, carbon monoxide, lead, drinking water, hazardous household products, pesticides and home safety. Booklet is available in several languages: English, Spanish, Vietnamese, Bosnian and Hmong. Contact: www.healthyhomespartnership.net for ordering information. Or, for the English version only, while limited supplies last (offer ends June 1, 2008), send $ 3.50 for cost, postage and handling to:
CSU - Denver Extension
Healthy Homes Booklet
888 E. Iliff Ave.
Denver, Co 80210
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Safe Kids - Playgrounds
Each year, more than 200,000 kids are treated in hospital emergency rooms for play-ground related injuries. Many of these injuries could have been prevented with the proper supervision. Check play equipment for potential hazards. Teach you child how to play safely. If your child knows the rules of the playground, it is less likely he or she will get hurt.
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