Money Lessons: Raising Money savvy kids
By Evans Attwell
Senior Vice President
Frost Private Banking
Vacations, days by the pool and visits to the theme park will soon be replaced with classes in math, social studies, language, sciences and more—all to prepare your child for the future.
Some of the most valuable lessons, however, are not likely to be taught in any classroom this fall, but by parents every day of the year. Research shows that children tend to copy their parents’ approach to money, and that is reason enough to make sure you pass on practical money skills and positive habits to the children in your life.
An admirable goal, it’s no easy task. Today, money is all but invisible to many children, thanks to the widespread use of credit and debit cards, Internet banking, and online shopping. That can lead children to think that money is an unlimited resource instead of real funds coming in and going out of their family’s bank accounts.
What is your child ready to learn?
A lesson about money means little if the idea is too abstract or advanced for your child’s age, maturity level or knowledge. That is why many experts suggest an age-appropriate approach that starts early, incorporates your child’s daily activities, and is reinforced regularly by your words and actions.
Taking into account that every child is different, financial education experts recommend some money concepts appropriate for different ages.
Preschool children:
• Money is necessary to buy things you need and want.
• Coins and paper bills have different values.
• Money comes as a reward for working.
Younger school-age children:
• There is a difference between things you need and things you want.
• If you patiently save money instead of spending it, you can accumulate enough for a larger, more important goal later. Example: Buy a cheap toy today, or save your money and buy a new bike next year.
• Not every item is worth what it costs. Shop around and compare costs and quality before you purchase something.
Would you like more information?
Contact Evans at 713.388.1367 or
evans.attwell@frostbank.com.