Between Christmas money, birthday money, or allowance funds, many kids have some money they seem to think is burning a hole in their pocket. Whether he or she is earning cash doing odd jobs around the house or working a part-time job, now is the time to teach your child financial lessons that will last a lifetime.
Take some time to visit the bank and talk to your kids about budgeting and paying bills. Kids Looney Toons™ Savings Club account is a great tool that helps teach kids to save.
When you go to the bank, bring your children with you and show them how transactions work. Get the manager to explain how the bank operates, how money generates interest and how an ATM works.
Discuss how your pay is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.
Explain the benefits of comparison shopping, coupons and store brands.
Explain the many ways that bills can be paid: over the phone, paper or by check, electronic check or online check draft. Discuss how each method of bill pay takes money out of your account. Be sure to cover late penalties, emphasizing the importance of paying bills on time.
Explain that credit cards are a loan and need to be repaid. Share how each month a credit card statement comes in the mail with a bill. Go over the features of different types of cards, such as ATM, debit and credit cards.