HIGH POINT, N.C. (WGHP) — 62% of Americans don’t understand the basics of banking according to Yahoo Finance.
Today is National Savings Day, a day to motivate Americans to save money.
There are ways to teach your children how to handle money because getting them started at a young age will help them later in life.
Start with the piggy bank. It’s a great way to teach children about saving money, but it doesn’t always give them a visual. So, use a clear jar to collect the coins and bills. That way they can see the money growing.
Also, show young children that everything in the store costs money. Next time you go shopping, let them take a few dollars out of their jar to make a purchase. Let them hand the money to the cashier.
For elementary and middle school-age kids, show “opportunity cost.” At this age, children should be able to weigh decisions and understand possible outcomes. For instance, tell them if they buy a video game, then they won’t have the money later on to buy that pair of shoes they’ve been wanting.
Avoid impulse buys. Encourage your child to wait a least a day before they buy anything that costs more than $15. They’ll be able to make that money decision with a level head the next day.
Teaching teenagers about money starts with teaching them about contentment. On social media, they see all kinds of ads for things they want from clothes to perfumes to cars. Teach them that just because what they have isn’t new, it doesn’t mean it’s not as good. Be content with what you have.
Give teens the responsibility of a bank account. Put their allowance or money for special events such as birthdays in the bank. This will hopefully prepare them for managing a much heftier account when they get older.
And finally, get them on a budget. Now is the time to get your teen in the habit of budgeting their income no matter how small it is. They should learn the importance of making a plan for their money while they’re still under your roof.