Kids Saving Money Article 1

Real World Examples Help Kids Save Money

As parents, we often make simple things way too complicated. We give our children lectures about proper behavior and attitudes, rather than simply exhibiting a good attitude and behaving well around others. This same dilemma is found when we try to teach our kids how to save money. It is usually easier to show them than tell them. Here are a few suggestions that may help you in your efforts.

Labor Has Rewards

Kids need to see, and feel, the fruits of their labor. Oftentimes parents will decide to give their children $10, $15, or more per week for simply being alive. That creates the wrong opinion towards money. Instead, parents should set up a group of basic chores and designate a dollar value to each one. For teenagers you may want to set up a list such as: wash dishes twice a week, wash and dry clothes once a week, vacuum all carpets once a week, etc. Each chore could be worth $5, or whatever your budget will allow. Smaller children may be delegated to putting away clean clothes, dusting bookshelves, and sweeping. Pay the children the same day every time, whether it is weekly, bi-weekly, or monthly. This creates a schedule and anticipation in their minds.

A Lack of Labor Has Consequences

In the real world, people who never work generally do not get paid. Children need to understand that if they fail to complete their tasks, their income will drop accordingly. Using the above example, if a teenager only washed the dishes once in a week, but their assignment called for them to wash the dishes twice, subsequently their income should be reduced for that week. Reinforcing this age old rule will show the children that real money is given in exchange for real work.

Set Them on a Good Course

Now that the children are earning money, show the kids saving money can be beneficial. Plan a trip to a local credit union or a bank and let the child open an account with their own funds. Each time you pay them, sit down with paper and pencil to determine an appropriate amount for saving, for fun, and even for needs. The fun category could be chewing gum, video games, MP3 downloads, and such. The needs category might be a new pair of shoes, a shirt, or anything else that the child thinks they must have but it seems out of line with the family budget. This can teach the child how to sacrifice, how to look for an item on sale, and the true value of a dollar.

Using real life examples when working with kids saving money is a much easier task to handle. You can instill values in them now that will literally change their way of life as they grow and mature.

This information is for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional advice or opinions on specific facts or matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the information in this article, it is recommended that a Doeren Mayhew representative be contacted. This article is property of Kids Saving Money.