Tag Archives: teaching

Using the Holidays to Teach Your Kids About Money

When fall hits, that means that the holidays are approaching. During these special occasions, kids are exposed to a different setting where they get gifts, large meals, cards, and more. That’s why Iowa State Bank of Fairfield believes that this time of the year is a great opportunity to teach your children about money. Below are a few ideas on how to incorporate your children into the holiday financial mix!

Identify the costs of the holiday season.

Gifts are a big cost, and children never realize how much it adds up. By putting a monetary limit on the gifts each child and family member gets, your kids will be able to see the value of each gift. Wrapping paper and gift bags are also a cost you need to identify to your child, along with the supplies needed such as tape and tissue paper. Cards and letters to family members can add up too, especially if you’re using postage. By allowing your child to understand that the cards they receive and send actually cost money, they will appreciate them more and try to find a way to save, possibly by making their own. Finally, the meals made for each holiday add up quite a bit, so this is another helpful way to teach your child about finances.

Limit gift giving outside of immediate family with homemade gifts.

This is another way you can cut costs if you have people outside of your immediate family you’d like to give gifts to. Ideas for these easy and efficient gifts include:

  • Cookies
  • Cake in a mug or other mug mixes
  • Spice rubs
  • Trail mixes
  • Brownies
  • Tea & hot chocolate

The ingredients for these gifts can all be bought in bulk, making them inexpensive options.

Take your children shopping with you.

When you bring your child with you shopping, tell them what the budget is. Then, let them look for items that are on sale or have special deals.

Use your receipts to create a tally of your expenses.

Not only does this help you keep track of what you’ve spent, but it also shows your kids how small costs can add up over time.

Teaching your children the value of money will help them grow to be financially responsible. So when you go to get groceries for a holiday dinner or gifts for a family member, have your child be involved in the process. You can also set up a savings account with Iowa State Bank of Fairfield to teach your kids the value of saving!

Teaching Your Children the Value of Money: 5 Simple Lessons

Teaching the Value of Money

Building a successful financial future for your little one starts with a strong foundation. At Iowa State Bank we offer financial opportunities for all ages! Grow the building blocks of fiscal understanding with your children using these fun and easy lessons.

  1. See the value of savings: Before they understand the concept of retirement, help them see the advantage of long term savings. Just as companies offer to match their employee’s savings plan contributions, offer to match your child’s investment in a purchase. If they save for half the amount, you’ll contribute the other half.
  2. Create a goal chart: Saving for a car, a college degree, or a home takes years of planning. Let your child see the value of long term savings by helping them visually track progress in their own investment. Choose a purchase such as a new tech device or a day trip to an amusement park. Based on their allowance and other sources of income, draw a column of boxes to represent the number of weeks of savings it will require, then draw an X or place a sticker in each box once they save the weekly amount.
  3. Open a savings account: An interest-bearing savings account can help your child track their money as it expands through simple deposits and compound interest. Open an account for your child early on to educate them on the concept of finances, and have them deposit a percentage of their allowance each month to see their own wealth grow.
  4. Demonstrate checking: When your child is comfortable with complex addition and subtraction, have them assist you as you track your deposits and purchases while balancing your checkbook. Show them a bank statement and explain the different components, identifying which numbers help you balance your checking account. Take this opportunity to explain the relationship between savings and checking accounts and give examples of why and when you would use each.
  5. Set an example: Your children look to you to set a precedent, so if you save, they save, and if you spend, they spend. Set up a savings jar at home for extra change and designate these additional funds to fun family events such as ice cream trips, movie nights, and more. Show them the power of savings one coin at a time!

Iowa State Bank wants to see you and your little ones succeed. Stop in today to learn about our savings account options!