At Libro, we believe the best time to learn about money, credit and the joy of saving is when you are a kid – you know what they say about old dogs and new tricks! That’s why we’ve created this site for your kids. They can play games and learn the importance of saving. You have a Libro Coach and now your child does too!
Check out the money section, which introduces kids to money. Help your child understand by explaining where your money comes from and what you do with it. For example, explain your household budget.
Establish the Value of Money
We call a child’s mind “small” simply by habit; perhaps it is larger than ours is, for it can take in almost anything without effort. – Christopher Morley
Lessons vary with age of course, but it’s never too early to start taking the mystery out of money. Parents and grandparents can play a vital role in establishing the value of money for their children and grandchildren. Here are some tips to help you get started:
- Be open & honest about your finances. If your kids ask how much you make or how much something costs, tell them. Acting like it’s a big secret is a major reason why money is such a mystery.
- Let your kids see your budget and watch you pay your bills. It will help them understand where the money goes each week and how important it is to be responsible and organized when it comes to finances.
- Give your kids a weekly allowance equal to their age. Whether they have to earn it doing chores or not is up to you. The most important part is that you set guidelines around their earnings – how much must be saved or given to charity and how much they can spend on their own. Once your kids have saved up for and paid for an item they really want on their own, they are going to take a lot better care of it.
- Open an account just for your kids. Libro has the youth savings account specifically for kids under the age of 13 and the youth chequing account for kids over 13. Both accounts pay higher interest and have no service charges. Use the monthly statements or online banking option to teach kids about interest and the security of keeping their money in an account. The youth account comes with Bill’s Beakon and access to this site for online games that help reinforce lessons and engage kids with their money.
- Get your kids involved in saving for family purchases. Your kids are part of your family, so get them involved in saving up for your summer vacation or a new TV. They might put part of their allowance into the savings, or agree to forego a treat this week so the money can be saved up. Make sure they see the savings happen by using a jar to collect coins or a chart to help track progress towards the goal. Your kids will value the vacation or TV more knowing they helped pay for it, and you’ll be satisfied that it’s not on your credit card.
Work financial lessons into every day life with children so they develop a good relationship with money which will benefit them for the rest of their lives. If you have any questions, or need help getting started with your children, don’t hesitate to give your Coach a call.
Please let us know if you have a suggestion for the site – a tip or lesson.
