Raising Money-Wise Kids

I had an “Aha!” moment recently. 

Grandpa had given my 2-year-old daughter a $1 bill. Her eyes lit right up. She pulled out her little blue flowered wallet, which had previously been used as a toy purse that goes with her on “shopping trips,” and she tucked it inside. 

I asked her, “Wow! What are you going to do with your dollar?” She thought for a moment and said, “Save it! I’m gonna save it!” The investment advisor in me beamed with pride. 

Then she quickly changed her tune, much to my chagrin, and shouted as only 2-year-olds can, “No…um…I buy gummy bears with my dollar!!!”

The scenario got me thinking. Of course, buying gummy bears is a lot more fun than saving money in a wallet. But, how do I want my daughter to learn about money? How will she behave with money? How will she save it, spend it, donate it, or invest it?

Everyone has moments that define their thinking and feelings about money. It starts when we’re young. I remember my mom took me down to the local bank when I was 8 years old and helped set up a savings account. The banker gave me a little yellow register to write down the transactions; keeping track of my 50-cent allowance and the birthday cash that would come in the mail. It was really something!      

Teaching our children and even our grandchildren early on about money, and how to be moneywise, is one of the best gifts that we can give to them. Check out this link for a few ideas to help teach your kids about money.