(NC) Teaching your children about finances is an essential life lesson, especially as society is increasingly becoming cashless. Nowadays, money can seem invisible to children and harder for them to grasp, both literally and figuratively.
The earlier you start talking to your kids about money, the more opportunities you have for teachable moments along the way.
To get the conversation underway, Emily Steen, senior manager of student banking at RBC suggests the following ABCs to help children learn about money and the importance of what’s really doing on behind our digital transactions:
A is for adding up: Pick a savings goal and create a family plan. Whether you’re putting cash in a jar or saving digitally, children of any age will benefit from a visual aid about how money adds up over time. And help older children create a budget for their allowance or earnings from part-time employment so they can help contribute to the savings. Add in a charitable donation, consider building towards a fun day trip – find ways to get children excited about the final result.
B is for bank account. Take your children to your local bank branch to open up a young savers’ bank account so they can learn how it all works and how to save. As your children get older and their bank account needs change, branch staff can explain how decisions made today can impact their longer term goals.
C is for cash. As a family learning exercise, use real money to teach your children about household expenses. A great example is groceries: if you take your child grocery shopping with you, they inevitably ask for extra items that are not on the list – or not within budget. Show them what your overall grocery budget is with cash and help them learn how all the small items add up. Take it one step further and talk about how spending over or under the allotted amount impacts your overall household budget.
Find more information at rbcroyalbank.com/student-solution
