I can’t believe it is already back to school time. I just noticed Halloween candy in the grocery store, which seems a little too early for me. However, this is the perfect time to teach your children about financial literacy.
Do you have school age children? Share with them what the back to school budget is, start with small numbers for the younger kids and raise the dollar amount they can spend as they get older. Guide them through comparing prices, show them how sale items and coupons can make a big difference in how much they can get. This will hopefully start the conversation about ‘needs’ versus ‘wants’, let them make the choices, sometimes one is better than four, but the decision will be theirs to make.
If your kids aren’t old enough for back to school, the US Mint has some great interactive games and activities to teach children about money: www.usmint.gov/learn/kids This is a great way to get your children started on the road to good financial health. Sit down with your young children and let them feel money, trace the coins with their fingers; our society doesn’t use cash a lot anymore so seeing it and feeling it is a good way to make it a concrete concept. If your children are closer to graduation than just starting out, let them know what you have budgeted for back to school items. For example, if you have budgeted $50 for new sneakers and they choose a pair for $30- they get to keep the difference; the understanding of ‘needs’ versus ‘wants’ becomes crystal clear when they are motivated to spend less. This can also start the conversation about saving versus spending.Many banks and credit unions have no fee youth savings accounts, it’s never too early to teach your children about saving and spending money wisely.
