Teaching your Kids About Money this Summer.
Summer break is upon us, and while it’s a time for relaxation and fun, parents may be looking for activities to do with their kids to keep them busy and engaged. One area that is often overlooked is teaching children about money. We teach them about many other things but often forget the importance of training children with strong financial skills.
But this is a crucial life skill that can’t be ignored. The earlier kids learn about money, the better off they’ll be in the long run. Among young adults today, an estimated 42.6% have spent more than they earned, and 39.8% have not invested any money – a sobering reality.
So why not take advantage of the summer break and teach your kids about money?
Here Are a Few Easy Ways that you can Teach Your Kids Sound money Principles this Summer:
Create a budget for summer activities
Sit down with your kids and create a budget for all the summer activities they want to do. This could include going to the movies, eating out, or visiting an amusement park. By involving them in the budgeting process, they’ll understand the importance of planning and making informed decisions about how they spend their money.
Play money-related games
Many games can help teach kids about money. For younger children, try playing store, where they can practice counting money and making change. For older children, games like Monopoly or The Game of Life can teach them about budgeting, investing, and making financial decisions.
Allowance and chores
Giving your kids an allowance and tying it to chores is a great way to teach them the value of money and the importance of hard work. They can use their earned money to save up for something they want or spend it on something they need. This also teaches them responsibility and the concept of earning money.
Keep the Training Wheels On
When parents create bank accounts for their children, it’s crucial to establish transparent guidelines regarding parental involvement and the children’s access to their funds. Initially, parents should assist in monitoring all financial transactions. Children can gradually assume more autonomy as they develop financial competence and accountability. However, parents must remember that they are responsible as account holders. Consequently, they would be obligated to reimburse any overdrafts or charges incurred.
Practice Online Banking
Whether a teenager secures their initial part-time job or lands a paid internship, their first salary is an achievement worth commemorating. Direct deposit is a vital method that prevents physical paychecks from getting misplaced and guarantees that their earnings go directly into their bank account. Online banking helps them stay on top of their financial obligations with ease. Portage Bank specializes in digital banking with an extra user-friendly platform to help your kids get ahead financially.
Teach them about the power of compounding
Teaching your kids about the power of compounding is an essential lesson in saving money. Show them how even small amounts of money can add up over time with the help of interest. This will motivate them to start saving early and set them on the path to financial success.
Remember, it’s never too early to start teaching your kids about money, so why not prioritize it this summer? You can easily open an account online with our user-friendly website at Portage Bank and show your kids how to watch their money grow online. Contact us or visit our website today!