Money and Responsibility: Teach Your Children to Give and to Save

(ARA) - Teaching your children the value of fiscal and social responsibility may seem like a challenge in any economy. There is good news. By financially educating your children early you will empower them and yourself. With the holidays approaching, and your children now in school, this is the perfect time to teach them these important life skills.

"There's no better way to lead than by example," says Bob Damante, CFO with SBLI USA Mutual Life Insurance Company, Inc. "While you're helping your children assess their finances, look at your own. Where is your money going? Are you saving enough for retirement? How much life insurance coverage do you have? As your children go through school and off to college, it's important they have a strong financial foundation to fall back on should something happen to you." The SBLI USA Web site, located at www.sbliusa.com, features a collection of informative articles and brochures with financial advice on a broad range of subjects. Or call (866) 331-3078.

Here are some tips on teaching your children to earn money, save money, and use it to help themselves and others.

1. Lead By Example -- De-Clutter!
* De-cluttering your life is the first step to positive change. Start with your own closet and explain to your children that removing outgrown or unused clothing and toys makes room for new items they may acquire.
* Donate your gently-used items to a local shelter or charity.

2. Allowance -- A first paycheck.
* Set a weekly allowance: You can also pay your children for special jobs they do around the house to lend a sense of accomplishment and responsibility; encourage them to seek out money-making ideas on their own!
* Break the allowance into bills and coins that will be easy to separate for budgeting.

3. Teach your children to budget -- A great first step to responsibility.
* Use three piggy banks, or envelopes: one for savings, another for a charity of their choice, and the third to hold money they plan to spend.
* For young children, money is a hard concept to grasp. Use visuals such as chocolate chips or raisins to represent income; taking them away to represent expenses.
* Start a journal and keep it simple; allowance on one side and expenses on the other. This will help your children develop a better understanding and appreciation for money earned, money spent, and overall costs.
* This will get you more organized to boot. Go to the financial planning articles at www.sbliusa.com for more tips on creating a budget.

4. Open a savings account with your child.
* As soon as your children are old enough to understand the value of saving, typically around the age of 5 or 6, take them to the bank and open a savings account.
* Teach them how to deposit money into their accounts or an ATM; also, plan regular visits to your bank's online banking center.
* Explain that money put into the bank will earn interest and continue to grow.

5. Technology -- Use it to your advantage.
* Technology is drawing children into the world of money faster than ever before. Remember, this can be an extremely beneficial teaching tool.
* To explore fun, kid-friendly financial concepts and budgeting online with your children, visit www.pbskids.org/itsmylife/money.
* Before buying something new, ask your children if there is something they can sell online first. They'll make money toward their purchase and become more aware of the value of what they're selling and purchasing.
* Remember to lead by example; teach your children about online banking and bill payment by letting them watch you.

6. Teach your child the value of making sacrifices now to benefit later.
* Your children should experience from an early age the rewards of setting aside money either to save or to help others.
* Teach your children to save by sacrificing a night out to enjoy a movie and snack at home.
* Teach your children to manage their cell phone usage online. This is a great way to teach them responsibility. If they go over, or have an unusually high bill, explain that they will need to pay for a portion of it. They will quickly learn the value of staying on top of their expenses!
* Most importantly, teach your children the value and reward of giving to others. Have them research a charity, or volunteer on their own. For volunteer ideas go to www.usafreedomcorpskids.gov.

Courtesy of ARAcontent