After your child has done the hard work earning the money, their first instinct may to be to run over to the mall to buy the latest and greatest trendy item. My parents said that the money was “burning a hole in my pocket.”
Younger children may not understand that they have not earned the total amount needed to buy the item they are interested in, nor may they understand that they could actually save up the money that they are earning in order to buy something that may be bigger or better. Learning that you do not have to buy something is a hard lesson. It is important to talk to your children about their goals of how to best save the money from their hard work. Saving is definitely and important skill to teach children at a young age to help make them financially savvy as adults. They learn about what is necessary in life, what is a treat, and how they may donate portions of their earnings to their church or a charity.
Children can save their money in a traditional piggy bank, or even a kid’s toy ATM which counts the money as they deposit it into the bank. With a traditional piggy bank, it would provide more math opportunities at home as your child would need to count and keep track of the money both going in and out. Kids could keep a journal, like a checkbook ledger, and write down all of their deposits, withdrawals, and their balance. Here is a kid’s template to manage money. They can also track their money online using a website like Three Jars. The advantage of the kids toy ATM is that they would be learning skills that adults use by being able to use a pin number, make both deposits and withdrawals from their account and see a balance.
By mathematically tracking their money, they can watch as the amount grows and make better goals for saving and spending.
Tomorrow, smart spending lessons will conclude our series on Summer Money Math.
Photo by Hobbies on a Budget