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How to Teach Kids about Money this Summer

| June 28, 2019
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The summer months mean lots of free time for children of all ages. While they have a break from school, it’s a great opportunity to take time to teach kids about money – it’s never too early! This summer, help your child(ren) to better understand how financial decisions impact daily life. 

With the summer months giving children more freedom to explore local activities like a museum, waterpark, zoo, or attend summer camp, the costs can quickly add up and strain the family budget. As the expenses increase along with the children’s free time, the combination allows for the perfect opportunity to teach lessons about money for kids.

Best Lessons About Money for Kids

Teaching lessons about money for kids isn’t just to set them up financially later in life, it also ensures they can learn how to count dollars and cents to help them determine if they received the correct amount of change, how the family budget impacts their summer fun, and the relationship between work and money.

By including kids in the money process to teach kids about money this summer, parents help ensure their kids can make wise decisions when it comes to saving and spending.

 How to Teach a Child the Value of Money

When delving into how to teach a child the value of money, there are various steps parents can take to help ensure the processis effective.

  1. Craft a Summer Budget with Your Child
    With the kids having more time to earn extra income by doing chores around the house or for neighbors, valuable lessons about money for kids starts with creating and sticking with a budget. When setting up a budget, one of the most important lessons to teach kids about money this summer is separating “needs” and “wants”. Parents can help their children figure out the difference between needing new shoes for school and wanting to go to Disney World for the weekend. 
  2. Make a List of Savings Goals and Summer Activities
    With nearly 40% of children reacting either confused or bored when discussing money with their parents, creating a list of summer activities for them to participate in and a savings goal for each activity can help alleviate any boredom and confusion. While saving for a toy can easily be achieved within a few chores, savings for the ultimate summer camp requires much more discipline and financial knowledge to achieve.

 For biggest savings goals, parents can offer incentives to children such as matching 10% of their savings to help them reach their goals. Not only will it help the child learn the benefits of delayed gratification but learning the benefits of interest is also a vital lesson.

Source:Jackson Charitable Foundation 

Make Sure They Earn the Money

 Whether finding part-time jobs or conducting chores around the house, making kids earn their money through work can help boost their savings while also providing them with a sense of achievement. By having to work for the things they want to buy, it also helps them appreciate and value what they’ve purchased because they had to earn it. 

With most parents discussing personal finances with their kids before age 12, the earlier you start the process, the more informed the kids will be to tackle financial issues when they arise.

Source:Jackson Charitable Foundation

 

When trying to teach kids about money this summer, taking the time to speak with a financial planner can help you determine the best financial process for your child to help guide you and your child on a path toward learning valuable money lessons at any age.

To help determine how you and your children can achievefinancial goals over the summer and how to teach a child the value of money, make sure to consult a financial advisor, like Matt Logan, who can help inform you and your children about the best money managing tips.

Matt Logan is experienced with achieving financial goals for his clients. If your family needs help achieving financial literacyor hitting savings goals, Matt Logan has proven strategies geared to fit your finances and lifestyle. Don’t hesitate to reach out to Matt Loganto see how he can help you and your family. Give a call today: 336-540-9700.

Matt Logan Inc. is an independent firm with Securities offered through Summit Brokerage Services, Inc., Member FINRASIPC. Advisory services offered through Summit Financial Group Inc., a Registered Investment Advisor. Summit Brokerage Services, Inc., its affiliates and Matt Logan Inc. do not give tax or legal advice. You should consult an experienced professional regarding the tax consequences of a specific transaction. These are the views of Matt Logan Inc, and not necessarily those of Summit Brokerage Services, Inc. and any of its affiliates and should not be construed as investment advice.

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