A Holiday Gift Idea from Virginia CPAs: Teach Your Kids to Save

 

The Virginia Society of Certified Public Accountants (VSCPA) recommends giving gifts that teach financial concepts this holiday season. Teaching children to use money, make change and accrue savings this holiday season will allow the lessons your children learn to last longer than the toys they receive. 

Toys that allow children to play “grown-up” have always been popular. Now children can play with toys that allow them to make withdrawals and check account balances at their very own ATM machine using a secret Personal Identification Number (PIN). Other money-minded toys include board games, such as Monopoly, LIFE and Pay Day, piggy banks, toy cash registers, safes, money play sets, money-themed books, coin collection sets, bubble gum machines and money sorters.

Virginia CPAs say that whether or not a money-minded toy is under the tree this holiday, the most important gift you can give your children this season is a lesson in smart money management habits. You should explain saving, investing, donating and spending in terms your children can understand.  

An allowance is a great introduction to how money works in the real world. Your children may not always make the right decisions, but they will learn from their mistakes now rather than when they are adults. Whether you require your children to save some part of their allowance or not, it’s a good idea to open savings accounts for them and suggest that they set a small amount aside whenever they receive it, including birthday gifts or money they earn from summer jobs. Of course, savings aren’t meaningful without a goal. When your child is dreaming of an expensive electronic gadget or some other pricey item, explain that he or she can have it — when there’s enough cash in the savings account to buy it. This will teach your children the value of saving and impart an appreciation of money and the things it can buy. 

Find more money management information and free financial resources for children and young adults by visiting the VSCPA’s consumer website at www.FinancialFitness.org.

LAST UPDATED 12/12/2011
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