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Ways to Teach Kids to Handle Money Wisely

At a young age, kids understand the power of money and how it can be magically used to purchase fun things. What they may not understand is the responsibility that comes with money. TV commercials and even their peers will teach your kids how to spend their money. Instead, why not instill your values about saving and spending wisely by following some of the fun tips below.

1. Walk the walk – or teach by example. Your children watch how you spend and save money. Using credit, paying cash, saving, overspending... whatever you do will probably be mimicked by your children.

2. Talk openly about family finances. Explain to your children what expenses you have as you pay bills without giving them every detail. They can have a basic understanding that some day-to-day living expenses have real cost to mom and dad.

3. Teach kids about the cash behind the plastic. Technology has made many transactions cashless. When you use a debit or credit card, explain that you are still paying cash for your purchase but in a different way.

4. Pay your kids to save you money. Occasionally give kids a mission to find deals in the grocery store. If they find an item that saves you money, let them keep the savings and use it to buy whatever they wish. Even better: make a deposit in their Free & Easy Kids Club savings account when walking out of the grocery store!

5. Make your work visible. Give them a glimpse into your job or the work you do from home. They will see that you must invest time and effort into something to earn money.

6. Connect savings goals to special wants. Set goals when your child decides to save for something special. Give him something tangible to shoot for each week or month. The sense of accomplishment in saving will encourage more saving.

7. Give them financial incentive to save.  Introduce mom and dad’s 401-K plan! Incent your kids to save towards their goal by offering to match a percent of their savings at certain savings levels.