Introducing The Guest Post Corner

Here at Role Mommy, we’re always kicking off new and exciting ventures, so beginning this week, we’re going to start featuring guest bloggers on our site. That means if you’re an author, entrepreneur or parenting expert, then we want to hear from you! Today’s guest post comes from Trisha Wagner, who writes for DepositAccounts.com and she offers tips on how to teach our kids about saving money.
Tips For Teaching Kids About Savings by Trisha Wagner
piggy bankMany people will argue that we are all born with a tendency to either be savers or spenders. I have seen this first hand in watching my nieces grow up. Born and raised in the same house, by the same parents in the same way my youngest niece is naturally frugal and has no desire to spend her savings unless something really special catches her eye. In fact she is currently using her extra money to bribe her older sister into doing chores; this works because my oldest niece spends her money before it is in her hands. Having witnessed this with my own eyes, I believe saving money and our overall spending habits are partially due to our own personality. With that being said, there is no reason why savers cannot learn how to spend a little or vice versa- in fact as parents it is our role to guide our children through their own natural tendencies and teach them the importance of saving money for future expenses.
Here are a few tips to help parents teach valuable lessons about savings.
• Get kids involved- Your children should be involved in family finances in an age appropriate manner. There is no need to burden your child with worry and stress in this poor economy however you can share with them what is happening and how it affects the family budget. By teaching your children how to navigate both good and bad times you are setting a realistic picture of what they will likely deal with as adults.
• Admit your mistakes- If you have made mistakes in handling your personal finances, do not be afraid to share these mistakes with your kids. It teaches them that you are in fact human and that lessons can be learned from these mistakes. This is especially true if you have set an example of living beyond your means, using excessive credit or focusing on material trappings in the past. Children mimic their parents and if they have witnessed poor financial management for several years, acknowledging the error in your ways may help your kids avoid the same mistakes in the future.
• Compare savings accounts together- The best way to teach your child about saving money is by simply doing it. If you do not have a savings account for yourself or your child already, now is the time to open an account and begin setting money aside for future expenses. Children old enough to get the basic concept of saving money can help mom or dad “shop” for the best savings account. By doing this together you have the opportunity to open a dialogue about important financial terms and answer questions that might pop up in conversation. This is also a great time to begin teaching your child about the benefits of long term savings….not only can they save for a school trip or great new jacket, you can show them how money put away today could make them millionaires in the future.
• Accept responsibility- One of the best lessons you can teach your children in today’s society is responsibility. Before you can preach personal accountability you must first practice it yourself. Each person has the ability to change their personal finances for the better with hard work and sacrifice. Do not blame others (credit cards companies, banks, your boss) for your current financial situation. While you may have a legitimate complaint, it is more important to show your child how to overcome these obstacles and move on toward success.
Financial independence is the best gift you can give your children. By starting early and making savings a part of their life, children are more inclined to continue these habits as adults.
Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accountsfrom dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.