Contrary to what your youngsters might think, money does not grow on trees.
Experts say it’s a good idea to give children real insight into where money comes from and where it goes – and to do it at an early age.
Consider it just another part of their education: reading, writing and especially arithmetic. Take the child with you to the bank.
"Get them accustomed to see what’s happening. I know some parents take the child with them when they make a withdrawal from an ATM machine so they can see how technology is introduced into the world of finances," says Garret Cosner of Central Pacific Bank.
The idea, Cosner says, is to ease the kids into that world of finance. Don’t ask them to figure out compound interest on their first visit. I asked Cosner if it would be a good idea for a youngster to have a bank account – if banks even have them.
"Yes, they do. In fact, many banks have different features and benefits depending on the child’s age. So a parent might want to check with their financial institution to see what they have," he says.
There may be some age requirements and a student ID. What about a joint account?
"It’s good to have a joint account with a parent because then the parent can monitor the activity on the account and at the same time give help and guidance to their child that’s getting ingrained into this process," Cosner says.
Are other things we can teach our kids about money?
"Maybe the value of money and where it comes from and how to manage that. Many times, children will see their parents walk up to at ATM machine and make a withdrawal and think that money is infinite," Cosner says>
And there is a clever way to teach the youngster the importance of saving.
"Having a child maybe having a goal and a reason for saving gives a connection and a purpose behind why you would want to save money in the first place," Cosner says.
See the original article at: KHON2 Local News
