“I believe the children are our future. Teach them well and let them lead the way.” – Whitney Houston

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If you remember, the idea of this blog was originally conceived when a child called into the Suzy Orman show.  If you don’t recall, then go back to my very first post and read where the inspiration originated.

I have been providing lessons to you each day in an effort to raise your level of financial literacy.  Yesterday, it dawned on me that these lessons are not isolated for adults, but are more effective when taught to children because as the song lyrics go, “they are the future, teach then well and let them lead the way.”  With that said, each Friday’s lesson from today forth will be to teach financial principles for kids.  However, I’m depending on you, parents, to share this information with them.  Make financial literacy a priority in your household.

Let’s begin from the beginning – teach your child how to save!

Education:

Let’s face it, kids like to spend money!  I don’t think there is a parent who would disagree with that sentiment.  The problem is that kids are taught to spend because they are constantly inundated with commercials and advertising campaigns designed to excite the dollars right out of their parent’s pockets and pocketbooks.  I don’t blame the kids, heck…they are just being kids…I blame YOU!  Yes, you the parents, because many of you have never taught them to SAVE –solvency through appreciating assets of value in my estate.

S       –        Solvency

A       –        Assets

V       –        Value

E       –        Estate

Teach you child that COINS are there friends!  If they learn to associate a simple coin with money in the bank, that association will help them to develop a lifestyle of saving!

What are you teaching your child or children about money?  Are you teaching them negative or positive aspects of money?  How are your reinforcing their understanding of money?  These are questions that you need to ask yourself.   If you don’t like the answer, then I challenge you to take advantage of Financial Literacy Friday for Kids!

Resources:

Kids’ Money (http://kidsmoney.org/) – Kids’ Money is an interactive resource for parents, teachers, teens, kids, organizations and international visitors designed to help children develop successful money management habits and become financially responsible adults.

Important terms from this lesson:

Term

Definition
Solvency In kids’ terms – Having more money and assets than debts!
Estate In kids’ terms – Everything that you own of value. 

 Action Step:        Make SAVING fun and for a purpose!  Here are your instructions.

imagesBuy your child or children a PIGGY BANK.  Yes, a piggy bank!

  1. Buy your child a calendar.

  2. Discuss what it means to SAVE with your child – Solvency through appreciating Assets of Value of my Estate.

  3. For 2014, circle one day in the calendar every month so that you have 11 days circled (sinced we are already in the month of February) – this is your official TAKE A KID TO THE BANK DAY.

  4. Find a bank like TD Bank with a penny arcade.

  5. Every month on TAKE A KID TO THE BANK DAY, have your child go to the penny arcade and deposit every coin that they found, earned, or raised during the month.  When you get your deposit receipt, use it to open up a SAVINGS (what else) account for your kid.

  6. Repeat this step every month.  Once received, go over the receipts with your child so that they can understand how money is saved.

If you have a teenager, then no worries.  Just skip the piggy bank portion, but follow everything else.  They need to know that one day of the month is set aside to SAVE!