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Ages 6-10
By age 6, you kids will be ready for an allowance. Begin to stress the importance of saving and help them set specific savings goals, such as a computer game or a new bicycle. Start a savings bank at home for your kids and remind them to add to it regularly. When they’re ready, usually at age 9, take them to your financial institution to open a savings account. Then, take them each month to make a deposit in their account.
Need vs. Want
Help your 6- to 10-year-olds understand the difference between wants and needs. They often find it hard to resist spending all their money at once on things they don’t need. Explain that it’s fun to indulge in luxuries now and then, but buying stuff on impulse can leave them cashless when something really important comes along.
But Everyone Else Has It!
A common struggle for parents occurs when their kids want everything “all their friends” have. Reinforce the notion that it’s OK and even good to be different. Never feel guilty about not giving your kids everything on their wish list. They can definitely live without the latest cool toy or trendy sneakers, and probably will soon get over wanting these things—especially if their home is rich in love, respect and affection—the things kids really need.
Kids who have everything they want soon lose respect for money and their parents. —Ann Landers (1918-2002)
Get Them Involved
Start involving your kids in real-life lessons about money. Give them a short list of grocery items to buy, but set a spending limit in advance. They can do their shopping while you do yours. Also, include your kids in family discussions about financial matters. For example, have them help you plan the family vacation: Should you camp or stay in motels?
