ICBA released advice for parents on how to talk to their children about money. Some of the tips geared toward parents of elementary school students included:
- Teachable Moments: Look for ways to turn everyday experiences into teachable moments. A routine trip to the grocery store could turn into a discussion about the importance of budgeting and how to identify wants versus needs.
- Earning Money: How children earn their money is up to their parents, but it is important that once they’ve earned it they understand it is a limited commodity. If your child spends all his or her money and asks to borrow more from you, don’t give in and spoil a valuable lesson.
- A Tiered Savings System: When teaching children about money, it is suggested that parents institute a tiered system that allocates money for spending, long-term goals and charity. By automatically taking 10 or 15 percent off the top of their earnings and designating it for savings, children can develop the habit of paying themselves first at a young age.
To view all of the tips and the rest of the press release, visit www.icba.org.