FCS 616

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FCS 616 Family Resource Management
Teaching Children the Value of Money By Kristi
Pawlowski
July 18, 2005
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Review

• Buy me this..But I really, really want
  it.Please! Please! Please!
• How often have we heard a phrase similar to one
  of these? Spending money is part of our
  culture. Our children watch us use cash, credit
  card and checks on a daily basis. We can use
  this opportunity to help our children understand
  the basics of saving, spending and sharing money.

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Overview

• Understanding that we have limited resources is
  something we need to teach our children while
  they are young. This way of thinking will help
  them make educated financial decisions throughout
  their lifetime.
• This lesson is designed for care takers to use
  as a tool to introduce children (5 6 years old)
  basic concepts involving money.
• Allow one hour to complete this lesson.

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Presentation

• Objectives
• Introduce children to saving, sharing and
  spending money
• Provide choices for children to consider when
  spending
• Have children set goals for purchases
• Create a visual connection for your child to see
  where their money is and goes

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Presentation (cont)

• Questions to ask your child
• What is saving?
• (Money set aside for something you will buy in
  the future.)
• Why do people save money?
• (To buy something they do not have enough money
  to buy right away.)
• What are savings goals?
• (Things we want to purchase but do not have
  enough money for right now.)
• Why should we have goals?
• (So we dont spend all of our money on things we
  do not need or want.)
• The ABCs of Saving, 2003 Patricia Bonner
  http//econedlink.org/?a414

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Presentation (cont)

• What are your short term goals?
• (Stuffed animal, small toy, carnival rides,
  movie ticket, etc.)
• What are your long term goals?
• (Bicycle, skateboard, pet, summer vacation)
• How do people get the money they want for their
  goal?
• (Most people work to earn money. They might
  receive money as a gift. Some lucky people win
  money.)
• Where might you get money to save?
• (Allowance, earn it, gifts, win it, etc.)
• The ABCs of Saving, 2003 Patricia Bonner
  http//econedlink.org/?a414

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Presentation (cont)

• With whom would you like to share your money?
• (Church, animal shelter, children without food,
  etc.)
• Visit Eds Savings Bank, http//www.practicalmoney
  skills.com/english/pop/games/p_ed_bank.html to
  encourage savings.

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Exercise

• Spend Save Share
• Find three jars you can see through like a
  pickle jar, mayonnaise jar, etc. Label one jar
  savings, one jar sharing and one jar spending.
  Use game money, or make ten one dollar bills.
• Have several of your childs favorite games,
  toys and treasures labeled with various dollar
  amounts from one dollar to thirty dollars.
• Divide the ten dollars into the three jars. Put
  one dollar in the share jar, four dollars in the
  save jar and five dollars in the spend jar.

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Exercise (cont)

• Let your child go shopping. Help them figure how
  much money they have, what they can spend it on,
  or what they need to save to purchase. When they
  are ready to purchase an item, give them choices
  of other items they could purchase for the same
  amount. Congratulate them on their purchase and
  saving skills.
• Save the jars for another time and add more money
  each time you play.

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Summary

• If youngsters learn how to spend wisely and
  delay gratification, they will develop patience
  and planning skills in other aspects of their
  lives, says Janet Bodnar, author of Dollars
  Sense for Kids (Kiplinger Books, 1999).
• Play the shopping game with your child once a
  month. Talk to your child about their financial
  goals. Help them give choices of other things
  they could be spending their money on each time.
  Use different props for your child to purchase.
  Donate the Share jar to a cause your child
  supports.
• Create three jars for your childs real money.
  Help them to divide the money anytime they have
  income (allowance, birthday, holiday, etc.).

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Summary (cont)

• When your child decides on a large item to
  purchase, go to the Savings Calculator
  http//googolplex.cuna.org/30399/5spot/story.html?
  doc_id314 to calculate how long it will take
  them to save for the item
• Take you child shopping! Let them make the final
  decision on what they purchase. Keep in mind, it
  is okay to have rule on spending i.e. no guns or
  candy.
• Additional activity print, read and color with
  your child. http//www.learntosave.com/colorbook.
  htm

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References

• Bodnar, J. (1999). Dollars Sense for Kids.
  Washington D.C. Kiplinger Books.
• Bonner, P. (2003). The ABCs of Saving.
  Retrieved July 11, 2005, from EconEdLink,
  EconomicsMinute Web site http//www.econedlink.or
  g/lessons/index.cfm?lessonEM414pageteacher
• Credit Union National Association, Inc. (2004).
  Googolplex Savings Calculator. Retrieved July
  11, 2005, from http//googolplex.cuna.org/30399/5s
  pot/story.html?doc_id314
• Kramer, P. (2004). Teaching the Value of Money.
  Retrieved July 11, 2005 from http//www.parents.co
  m/articles/ages_and_stages/3173.jsp
• Raindrop Entertainment. (2000). Helping Families
  Learn About Money Coloring Book. Retrieved July
  11, 2005 from http//www.learntosave.com/colorbook
  .htm
• Visa USA, Inc. (2000). Eds Bank. Retrieved
  July 11, 2005 from http//www.practicalmoneyskills
  .com/english/pop/games/p_ed_bank.html