7 Tips to Teaching Kids During Summer

Summer is here and school is out, but it doesn’t have to mean that learning stops. There are opportunities to learn from life experiences — especially related to finances — that help adults and children alike.
  It’s up to parents to teach children the dollars and cents of finances. Every day has opportunities for conversation and teaching moments that set the stage for success. Here are seven possibilities:

Teach good habits
  The options for summer fun and spending make it a natural time to help children understand how to manage money and operate within limits. Rather than serving as a “bank” dispersing funds for every whim, consider paying a weekly allowance to cover discretionary spending. Agree to divide each allowance into portions labeled “save,” “spend,” “give” and “invest,” and explain parameters.
  Having a systematic “payday” at the same time every week will encourage discipline in managing money.

Plan and follow a budget
  Planning a party or a home improvement project? Involve children. They can see how you decide your plan, estimate costs, comparison shop and track your budget.
  Once they understand numbers, small children can participate. Ask them to decide whether the price of an item is more or less than a budget number, use the calculator to add up items as you shop, or handle their own small project. While gardening, for example, give your child a small budget to choose and buy flowers to plant in a designated area while you complete the rest of your project.

Run a business
  From lemonade stands to lawn mowing, summer is filled with business opportunities. Financial management is essential, so be sure that children account for expenses as well as income and understand there are costs to any endeavor. Reinforce that any profits should be allocated to “save,” “spend,” “give” and “invest.”

Keep a job
  A first summer job is a chance to offer guidance on what employers expect. Punctuality, proper attire, listening skills and good communication are important for all employees. Summer work also may involve collaborating with people of various ages, so pointers about teamwork can be helpful. Don’t overlook the chance to explain financial documents and processes, such as the information on their paycheck stub, payroll and government withholding, and options for direct deposit into their bank account.

Learn from role models
  Make the most of visits with grandparents, family and friends by asking them about the financial strategies that worked best for them. Their memorable stories will be recalled for years to come as they reinforce the importance of financial responsibility and commitment. Remember that parents are a child’s first role models.

Set and save for goals
  Explain your goals to your children and encourage them to set some of their own. Saving for a special event or end-of-summer reward will give them first-hand experience in delaying gratification with a goal in mind.

Understand banking & personal finance
  From using a savings account to balancing a checking account, using credit and paying bills, everyone needs a fundamental knowledge of personal finance. Take advantage of the various resources available and introduce them to your children, as appropriate, from an early age. Information is available at www.themint.org.

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