We recently wrote an article in our company newsletter about the benefits of teaching children wise money management skills. Part of the article had to do with instilling in kids the ability to delay gratification when it comes to money. As many of us know, teaching children how to save money early in life can pay big dividends later on. Jeremy had included a picture of his three boys holding their piggy banks with expressions of joy on their faces. We like to think it is because they are happy little savers but maybe they just wanted the piece of candy they were getting to sit still for the picture!
Since the time we wrote the article, Ryan, Jeremy’s oldest son, had asked if he could open a bank account in order to save his money but also earn interest. As Jeremy had mentioned, “I guess Ryan overheard my wife and I talking about how you can earn money in a bank or investment account because he asked to open an account purely on his own, without any coaxing on our part.” So, Jeremy and his wife agreed that Ryan, along with his two brothers, could open bank accounts. Together they visited several different banks in the local area so the boys could get an idea of how each one was different. They asked questions, played with the coin counting machines, ate candy, learned about how a bank keeps your money safe, and ate more candy. In the end, without any persuasion from mom and dad, the boys ended up choosing a local bank because of its more appealing interest rate. Seriously, in Ryan’s own words, “I want to use the bank that has the best interest rate.” We thought for sure the kids would pick the bank with the best treats!
This example makes us think of how important it is to instill these values at an age where children can begin to understand the decisions they make when it relates to their money. To that end, Charles Schwab recently published an article having to do with helping kids in grade school learn about money. This is something parents and grandparents can do on a regular basis to give our kids solid financial literacy as they grow and mature into adults. To read the entire article please click here.
You can also learn more about Schwab’s effort to bring financial literacy to the forefront by visiting their website: Schwab MoneyWise.