Taking Kids To The Bank

One of the most important things you can do to teach your kids about money is to take them to the bank.

Explain how the bank works, where your deposits actually go, what the bank does with their savings and that it is safe, secure and that they are earning money on their money!

Younger the better and continue to take them to the bank to physically deposit their savings.  This reinforces a strong message about saving.

I understand that depositing at the ATM or via the iPhone is a lot more convenient but I don't think they get the same message that way.

I am not referring to your kids college savings plan or 529 plan, that is something that should be handled differently.


Introducing Your Kids To Money

As soon as your kids can count, introduce them to money.  You'd be surprised to learn that kids as early as age three (3) understand the concept of money.

Pre-school and kindergarten teachers use money, usually pictures of coins to teach our kids how to count and add.  Your job is simply to take it one step further.

Explain that this many coins is what it costs to buy their favorite toy or ice cream.

This relationship is important to learn early.  Observation and repetition are two important ways that kids learn.


Use Cash Occasionally

I was out shopping with my son not too long ago and he asked for a toy and I said no (sometimes you actually have to say no - even if you can afford it).

He asked why and so I used that as a teachable moment.

I said that toys cost money and that Mom and Dad work to build up a pile of money and that everything we spend money on takes away from that pile.

He said then I should just use the credit card!

It dawned on me right then and there that kids these days see us use our credit or debit cards (and not cash) so they don't really have a chance to witness and make the connection between spending and cash.

I suggest that we parents use CASH occasionally to buy stuff to show the kids that stuff costs money and its not some magical process of swiping a plastic card and getting stuff.



We all try to do our best for our kids.

Studies show that one the most important factors in a successful life is a moderate amount of personal financial knowledge.

This is sorely lacking in our educational system which means its up to us PARENTS.

This blog and my book "How To Teach Your Kids About Savings, Debt and Investing" are aimed squarely at resolving this problem.

The strategies within will help parents to teach their kids about money, savings, debt and investing in an easy to follow, step by step, age appropriate way.