4 easy ways to teach your tween financial responsibility.
Using plastic to pay appears simple and easy to your child. Does he or she conceptualize that it takes your hard work to pay for every purchase? To illustrate how it works, share your credit card statement. In the transaction list, ask your child to find specific purchases.
While you’re sharing the bill, point out the box that shows how much of your hard-earned money you will lose paying interest when the full amount is not paid off every month. On the bright side of interest, go to a bank website to learn how interest can be earned in saving accounts and CDs.
May I suggest, that you establish an agreed upon percentage to save from all allowances, monetary gifts, and monies earned. Together, go to the bank once a month to deposit what’s been saved. Talk about goal oriented savings and raining day funds.
Set up expectations for what can be purchased. Examples are determining what expenses an allowance will go toward and if they can spend their money in the school lunch line. On the other hand, teaching generosity is important, too. Giving to a charity, cause, or school fund raiser is a great start.