Making Summer Money Last
It's back to school time, so the summer break is over for most kids. If they had a job the last couple of months, they may have saved a little money. However, for kids, money can quickly disappear as it tends to "burn a hole" in their pockets. They want to keep up with their friends, go to movies, buy clothes or food, and do other activities that may erase a summer's worth of work fast.
As a parent, you want them to learn proper money management skills, but don't want that to keep them from spending time with their friends. Here are few strategies from Lincoln Savings Bank to help them make the most of their money.
Open a checking and/or savings account-
if they don't have one already, open a checking and savings account to help them learn the value of saving and making the proper decisions with money. However, you may want to consider whether a debit card or cash is the best option for them.
Consider using cash-
we have a much more intimate connection to cash than we do to swiping a debit card. The stimulus created by physically handing over cash can help kids to spend wiser and also look into getting the most for their money during this important time of their lives while they are learning important financial life lessons.
Institute spending limits-
just like we suggested for college students, if something is over a certain limit, train your child to think if it's really necessary. Filling their car with gas is one thing, spending $100 on jeans when there are cheaper options available is something entirely different.
Combine strictness and leniency-
there will be times where your instinct to say "no" when a child wants to purchase something is right, and times where it's not. Let them learn by doing; let them go to the movies with friends, but don't give in when they come to you in a few days asking for money to go shopping. Instead, educate them on needs versus wants and making better decisions.
What tactics have you used to help teach your children financial responsibility? Whether it's something from this list or another technique, we hope it has worked for you.
Lincoln Savings Bank is always willing to help in any way possible, so you can come to us to help with your child's ever changing financial needs.