What are your kids going to do with the gift of money received from grandma for Christmas? If they’re not yet money-savvy, now may be the time to begin The Money Talk.
Here are suggestions to get you started.
Set up an allowance. Have your child decide how much should go into the saving/spending pile, and how much should be set aside to share with others for charity, birthdays or holiday gifts. Discuss the “pay yourself first” theory, and suggest putting part of monetary gifts into an account for future use such as college or a car.
Take a field trip to your local bank. Once there, establish a savings account. Some banks and credit unions offer special low-fee accounts for students and young savers. A planned-in-advance visit to the vault is a great way to cap off the adventure.
Go over the bank statements. Explain how keeping track of banking transactions will help safeguard savings by avoiding fees, scams, and identity theft.
Make The Money Talk an ongoing conversation. Discuss the lure of advertisements, the pitfalls and benefits of credit, and the difference between debit and credit cards. The topics you and your child discuss during The Money Talks will change as your child grows.