Talking to your kids about money by jeremymendez

VIEWS: 5 PAGES: 1

More Info
									           Talking to your kids about money
           We live in a consumer-oriented society where money is part of daily life. American kids are barraged with
           advertisement encouraging them to buy. As a parent or guardian, you have the opportunity to educate
           your children about smart money management. Understanding the fundamentals will help them become
           financially self-sufficient, with the knowledge to take advantage of financial opportunities.

           It’s never too early to begin teaching your children the basics of good money management. Here are tips
           for introducing your children to the fundamentals of money and personal finance:

           Make it a (daily) conversation
           Share your thoughts with them about how you make your daily spending and saving decisions. They’ll
           also benefit from hearing about your past mistakes and what you learned from them. Include them in
           your daily financial activities and decisions, such as helping you clip grocery coupons and discussing pros
           and cons with the family before a major purchase.

           Start young
           As soon as your children can count, you can introduce them to money – dollars and cents. When they are
           old enough to shop, you can introduce them to the ideas of spending, saving, and how money is used to
           store, measure, and exchange value.

           Discuss the fundamentals
           Once kids understand the idea of money, introduce them to the basic concepts about how to use money
           wisely. Encourage your kids to recognize needs vs. wants, set goals and save for them, make money grow,
           be a smart shopper, and keep good records of their financial activities.

           Let kids make money decisions
           Most kids receive an allowance from their parents. An allowance gives them an excellent opportunity to
           learn and practice money skills they’ll need throughout their lives. On a small manageable scale, an
           allowance lets them make their own decisions and their own mistakes – and live with the consequences.

           Visit the bank together
           Around age 10, when children can start to understand the concept of interest, take them to a bank to open
           an interest-bearing savings account. Teach them how to make deposits and withdrawals, keep an account
           register, balance their account, and use online banking to track account activity.


           For further information, please visit www.handsonbanking.org or your nearest Wells Fargo store.




© 2010 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.                                            www.wellsfargo.com

								
To top