A lesson that is always good to teach children is how to use money wisely. From a young age, kids are curious about money because they see their parents and other adults use it daily. They think about what money is used for and how it works because it is something they aren’t used to yet. But it is very important to teach children the importance of money early on so that they can learn ways to handle money at a young age.
Allowance is a great way to teach kids how to manage their own money. They can earn a certain amount of money for a week of chores, giving them a sense of work ethic and ownership of household duties. If they do more than expected or asked, maybe even a little bit of bonus money is a good to motivate them to work harder for more money. Allowance teaches children how to save money as well. Sit down and talk to your child about saving for a particular toy that they have been eyeing for a while. Teach them how to save up for the toy so that when they get that toy they don’t use all their money.
Give your child a wallet and/or some sort of bank to put their money in. Teach them to have some in their wallet that they can spend “now”, and the money they are saving goes in a special box or piggy bank for things they are saving up for. It is good practice for them to use these tools so that when they go to open their own bank account for their first job, it is a somewhat easy thing to understand.
Have your child start saving for college at an early age as well. Give them a check for birthdays and other holidays that you seem fit and tell them that money is for their college fund. Having that money saved away will help you and your child avoid any more debt than you need to have. It also gives your child a bit of ownership in their college process to see themselves saving up for school.
What are some tips you have for keeping your children financially savvy?
We all need time off from our hectic lives and jobs. We get tired of the same routine and locations that we crave just a glimpse of a different way of life, a new culture.
Planning a vacation can be like having a part time job in and of itself, especially when planning the financial aspect of it. Paying to go somewhere can seem so daunting that we will often just give up and never go anywhere outside of our “bubble.”
Instead of giving up, however, let’s think of some ways you can start saving and enjoy your vacation.
- Start saving early: Have a bucket that you keep spare change and extra money in. Make it a point to put some money in the bucket every week (some more than others) so that you can put that money towards your vacation. Give your kids thier own piggy banks, too, so they can start saving up for souvenirs.
- Pack conservatively: Don’t overpack your bag and try to conserve space so that you don’t have to check as much luggage. The more you can carry on the plane, the better.
- Budget while on trip: Make sure that you are watching how much you spend while on vacation. Be aware of what attractions you want to see or do the most so that you have enough for those activities.
- Pick a reasonable location: Do not go somewhere that you cannot afford or that would not be appropriate for young children. There is nothing wrong with a road trip to a neighboring state for a week when you have little ones. You can make any trip fun by finding activities that are out of the norm for your home area.
- Think of souvenirs: Remember that you will want to get souvenirs when on vacation. If you want something in particular from where you are going, budget to spend on that particular item. (Ex. You are going to Texas and want to get a pair of cowboy/girl boots, make sure to save $80-$200 for the boots.)
USA Today has a great article about vacation preparation tips, as well: http://traveltips.usatoday.com/budget-perfect-vacation-11096.html
Comment below with your own financial vacation tips! We know everyone has thier own tricks on how to save money, and we would love to hear yours.