This post was underwritten by BMO Harris Bank, which offers a matching $25 on a new savings account opened for your child through their Helpful Steps for Parents program. Learn more at bmoharris.com/parents.
Right now the economy isn’t the way we would like for ourselves financially or for raising our children. BUT it does give us the perfect opportunity to talk to our kids about the importance of money .
When is the right time and what age is a good time to talk to our kids about money and it’s value? NOW. I have kids from the ages of 3-14 and I talk to them all about money and saving.
For my 3 year old. He is young and doesn’t understand, but he sure does love getting money and putting it in his piggy bank. He gets so excited when he finds change or I pay him change for helping me. Although he doesn’t understand it’s importance now, I am getting him excited about money and saving. Once he is at an age where I feel he understands and is ready, we will count his money together while talking about it and then take it to the bank (like we did with his oldest sister).
My 6 year old sees her mom and dad use a credit card and money to purchase all the things we need, so a common phrase from her is “I want” and “well daddy has money” or “can I get one of those please”. I felt like it was a good time to talk to her.
- We have talked about why daddy goes to work all day so that we can buy things we NEED. We have also talked about the difference between NEEDING and WANTING.
- I also use a reward chart, which she can earn money for doing her homework, reading, helping around the house, and picking up after herself.
- She LOVES getting paid, putting money in her piggy bank, AND likes the thought of being able to save all her money in a cute bank so that when she has enough, she can buy the toy she wants.
- Play Games like “Allowance” (I got at educational store).
- When we pay her, we talk about dollars, different coin amounts, and try to add them.
My 14 year old is at the age where it is really important to teach her the importance of money and it’s value. Here are the things we have done with her.
- Talked to her about saving money and why it is important. She wanted a gaming system, so by the time she had enough money saved in her piggy bank, we gave it to her and allowed her to buy the gaming system. NOW she wants a MAC laptop computer. So she has been putting money in her bank account and is only a few hundred away from her goal.
- Earns and saves money. She gets an allowance and babysits for our kids and the neighborhood kids. She saves her money in an account. She gives all her checks and cash to her dad and then they go to the bank together to deposit it. She likes keeping her money in the bank so she isn’t tempted to spend it on things she shouldn’t (like slurpies and candy).
- We got her a bank account with her own personal debit card. Now she is responsible for her own money and making purchases that she can afford. She wants to buy a gift for her friend, well that is taking away from the money she needs for her computer.
- We have explained how important it is to save, because you never know when something unexpected will happen. We explain that is what has happened to some of our friends and family members who have lost their homes due to not saving and being financially responsible.
- My husband has printed out statements and explained interest. How to earn it through savings, paying it through loans/credit cards, and why there is interest.
Be sure to talk to you kids about the importance of money and it’s value. 
I was selected for this sponsorship by the Clever Girls Collective. To learn more about BMO Harris Bank, visit their website http://bmoharris.com/parents.
