Children love to mimic behavior, and there's no exception when it comes to money. Here are some situations in every day life that your children may observe. Be aware of your actions and explain what you are doing, especially if the actions could lead to confusion.
Using the ATM Machine:
Explain that the ATM machine is connected to your bank account. Without an explanation, a child may believe the ATM gives out money for free!
Writing a Check:
Think about what check writing looks like for kids. It's hard for them to understand that you can write your own money. Why work for it if you can just create your own?
Buying Groceries:
Do you shop with a budget? Are kids allowed to add their own purchases to the cart? Be sure to describe how sales work and your shopping habits.
Using a Credit Card:
Explain to your kids that the card keeps track of your purchases, but as soon as the bill arrives in the mail, you must pay it. Teach your teens about credit early to help them avoid credit card troubles.
Making a Bank Deposit:
Explain what a bank does with money on deposit. It's easy for kids to think that the money just sits at the bank. For example, try teaching them that the bank will loan it out to other people to help them buy houses.
Absence of a Paycheck:
While your child may understand that you work to earn money, the use of direct deposit can hide the earning concept from your child. Mark your paydays on the calendar for your child to see until they start to realize how it works.
