Our bankers’ favorite quote from Benjamin Franklin is, “a penny saved is a penny earned”.
This expression has never been more important than in today’s ever changing financial landscape. Wise planning encourages savvy spending and saving for the future. It’s important to start learning these habits early and instilling them in your children is the best way to set them up for a successful future.
Here are some of our favorite money moments to give our children insight into the importance of smart money management:
Turning your next grocery shopping trip into a lesson on saving will not only keep your child occupied and entertained, but also help them to learn the importance of comparison shopping. Start with a shopping list, showing the importance of planning ahead. While going through the store, identify the moments when comparison shopping is most beneficial. Buying for value rather than brand is always the smartest way to save money on groceries.
Extra points if you let them manage the coupon folder!
Providing An Allowance
There is some controversy around whether parents should give their children an allowance or not. Some consider it a “hand-out” or spoiling for the kids, but within certain limitations, providing children with a regular “income” is a wonderful opportunity to teach them the basics of earning, spending, and saving. Allowance should be set to a regular schedule and generally tied to merit such as cleaning up their room or assisting with other chores. It’s best to avoid giving them extra money in between to signify the importance of making your money last and spending within your means.
Giving them the power to spend their money where they want can teach them to identify the difference between wants and needs and what it feels like to work for their money.
Help Your Child Open a Small Business
Don’t you love walking down the street on a summer day to find a neighborhood lemonade stand set up? This is a great way for your budding entrepreneur to learn financial skills beyond just personal money management. The adventure of starting a fun little micro-business is a great way to build confidence in their financial skills and teach them true understanding of the costs of supplies and how to turn that into profit. They’ll learn how to set and achieve goals, understand profit and price, and develop basic math skills.
Open a Checking or Savings Account for Your Child
HomeTown Bank offers parents the opportunity to open an account in their child’s name. Owning and maintaining an account helps children learn important life skills in both banking transactions, but also in spending and saving and watching their account balance grow over time.
HomeTown’s Kid’s Club Savings offers further support with the HTB Kid’s Club Membership. This club is a great way to make saving money fun and each child receives their own FREE Homer the Pig Piggy Bank so they can start saving immediately!