Teaching the Value of Money
In a recent GoBankingRates study, 69% of adults admitted to having less than $1,000 in the bank, while 34% said they actually don’t have any savings at all. But apparently, this collective lack of savings doesn’t get all that much better with age. A study by the National Bureau of Economic Research found not so long ago that almost half of Americans die nearly broke. Of the general population, 46% of retirees die with savings of $10,000 or less. But that number climbs to 57% among retirees who are single.
It is never too early to start teaching children to save, these days toddlers know what money is, and by the age of two with your help, they can buy an article and have even learned what the coins are.
My Thought’s about Children and Saving
Children have lost the way to save these days as EFTPOS and Credit Cards have taken over the money scene, they never see real money.
All children ever see is a card that is added to a machine and out comes money or a card pay’s for the articles they buy, the young ones never ever see coins or paper money, so how are they to learn about the value of money.
A program in responsible cash management could be a good idea in schools, at a young age. This would give children with parents who are dysfunctional in that area a chance to not follow in their footsteps and perhaps teach them how to save.
Teaching some of the complexities of money at an early age (in terms the child can understand) helps to set a regular practice of viewing money as a means of subsistence and not a ticket to the mall.
In many cases just teaching the children to put their money in a bank won’t teach the value of proper handling of money if the parents are spendthrifts.
Maybe it would be an idea for your child’s fifth birthday, buy then a money box and start them on their way of saving, add some money every year on their birthday.
Learning to save at school in the 1970’s
Schools do not teach the skills these days to learn the value of money as they did back in the 1970s when my children were going to school.
In New Zealand the Post Office had a weekly banking where children learned to fill out a form and bank money every week, watching the amount mount up weekly, they would get paid interest at the end of the financial year on their savings.
I remember mine would come home from school all excited how much money they had in they Post Office account sometimes they would just sit there looking at this all-important bank book, I used to wonder what was going through their minds.
This saving habit was only done at primary school, once they went to high school it was transferred to a bank account which they open themselves had a talk with the bank clerk which made them feel very important and started them on their career of work and saving a little every week of their earnings, they would bring their bank account to me to see, so proud of it and I was very proud of them.
By the time they were ready to set up their own home they had already set up a good relationship with their bank which continued on through their life, but all children are not as lucky as this to know the value of saving and setting goals for their future.
Now in the twenty-first century, there is not enough encouragement for children to save, they receive a few dollar, run to the nearest store and spend it no idea about saving, I see it around me all the time, so much money wasted on sweets or just plain junk.
I know even though I don’t need a money box to save money I really enjoyed that little piggy above, I received for my seventh birthday at a family get-to-gather.
That day (My Seventy Birthday), it made me feel so good, as I watch my family, add a few coins in it, watch by the grandchildren and great-grandchildren and now some nearly seven years later when they visit they ask me how much money I have saved?
I do add some occasionally. One day whoever breaks that piggy will get a surprise how much money is in there.
I’m sure my great grandchildren will never forget that day, on my seventh birthday.
Looking forward to your thought’s about teaching children the value of saving.