Grandparent visits are great times to help children learn the importance of managing money. Young children can learn to save, donate, and spend wisely.The lifelong process of responsible personal finance can begin at a very early age.
Home Bank …
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Home Bank System
To make a homemade banking system, label three see-through plastic containers with SAVE, DONATE and SPEND.
There is also an award winning see-through plastic piggy bank with sections labeled SAVE, DONATE, SPEND, AND INVEST online. Search for Money Savvy piggy banks for this great gift.
Grandparents can help fill the bank by bringing coins instead of treats or toys when they visit. Young children like to receive coins rather than paper money from grandparents because coins seem like more money. Unfortunately, children also like to eat coins or push them inside machines to see what will happen so supervise children handling money.
Families can teach children to recognize and count the money. Sort pennies, nickels, dimes, and quarters into piles using the proper names.
Because pennies are worth “one,” they can be used to practice counting and end up with the correct value. Move each coin and count together to avoid double counting and skipping numbers. Learning to say a number each time a coin is moved or dropped in the bank is an important skill and usually takes practice. Young children can count to ten or twenty and then start over again.
When children receive a new stash of money, supervise dropping equal amounts of money in each section. Otherwise, children quickly learn to place most of their money in the SPEND slot.
Talk About Money
While the money is being counted, it’s a good time to teach young children to give to others through religious groups, charities, or the Humane Society.
How do they plan to spend their money? What are they saving for?
Families may want to encourage wise money use by matching the amount of money children devote to these areas.
Families can make up a written piggy bank statement together and add or subtract the money in front of very young children.
Take children along when you do your banking and explain what you are doing. Open an account at the bank or credit union and give them age appropriate information. They won’t like learning their money is not actually in the bank or others use their money.
Let children save up for items and take the money out of their own piggy banks. They often think twice before spending their own money and watching their pile go down, a good life lesson.
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