Dad Tip of the Day: Teach kids about money and how to use it responsibly at an early age, starting with the piggy bank.
Did you have a piggy bank growing up? I certainly did. My piggy bank was always being raided though, as I had important purchases to make at the corner gas station, such as Fun Dips, candy bars and Cokes!
Helping kids understand money at an early age will benefit them later in life. If kids think money grows on trees, then they will be prone to overspending and getting themselves in trouble (not to mention spoiled). If kids think money is to be hoarded because it is so scarce, they will miss out on opportunities to have fun in life. Striking the right balance of fun and responsible is something that parents need to teach their kids (and hopefully they have figured it out themselves!).
In our house, we are teaching our kids that money is earned. An example is that an allowance is earned when chores are done well. Once that money is earned, the next step is what to do with it. We are teaching them to give a portion to charity, save some, and then figure out how much is reasonable to have fun with. Aside from no living expenses being factored, this is essentially the same budgeting technique we adults use.
Adding hard earned money to the piggy bank is something that kids will learn to take pride in. It also helps having generous grandparents, as our kid’s piggy banks are already full of big bills, in addition to the dollars and coins they are able to earn.
Talking about money and how to use it responsibly will get your kids far in life – start early!
Here are our kid’s piggy banks:
Would love to hear any tips or stories my steemit friends have as well!