Dollars & Cents for Youth
Lesson 3 - Study Course For Parents
Main Ideas
• Key Words
• Money Talk
• Saving
• Tip For Parents
• Sharing
• Things To Do
• Lesson 4
Main Ideas
- Children use their money for spending, sharing, and saving.
- To get the most from their money, children need a plan for using it.
- Using money is rewarding when goals are achieved.
Key Words
Goal - This is your objective; what you need or want. It is what you are working for.
Need - A need is something necessary for life - food, clothes, shelter.
Want - A want is something you believe or think will
make your life happier and easier. A want is not necessary to life.
Money Talk
As with adults, children use money in three main ways. They
spend, share, or save it. This lesson will explore saving and touch on sharing;
the next lesson will highlight spending and making a spending plan.
Saving
Piggy banks introduce the idea of saving money. Dropping
pennies into the bank may be done by habit. Saving for a goal can be much more
beneficial to the child. Saving for a goal inspires children and adults to gain
control in spending and to plan for future needs and wants. Savings must be
related to a child's concept of time and specific interests. Until children
are 12 to 15 years old, they may not fully understand the concept of time.
Small children may enjoy playing a game by dropping pennies
into a bank. It may teach obedience, but it does little to increase their
understanding of the value of money. On the other hand, when a 9-year-old wants
a baseball bat, he/she begins to understand the importance of putting aside
money each week to have enough for the purchase later on. Elementary school
children have a hard time understanding saving for college or future security.
Older children learn to save for clothing, vacations, and college.
When your children have gained some experience in handling
money, it is probably time for them to open a savings account. Opening a savings
account as well as shopping for a good interest rate can be educational.
Financial institutions welcome younger customers since they will be the
customers of the future. These organizations realize the better educated they
are as children, the better customers they will be in the future.
Helping children learn to save for specific items can be a
valuable experience. They will learn that if money is not dwindled away on small
things, larger and nicer things can be obtained. When children begin setting
goals, be sure you guide them. But do not set goals for them.
Tips for Parents
- Your example is the best teacher for your child.
- Saving for a rainy day has little meaning; there must be
a definite, easily understood reason to save.
- Goals need to be realistic - consider the child's age
and maturity.
- Savings must be done regularly no matter how small the
sum may be.
- The piggy bank is for the child. If you borrow money from
the bank, be sure to repay promptly.
Sharing
Training a child to give and share has a value beyond the
world of money. Sharing develops thoughtfulness. Preschoolers are ready to
handle money. They are learning their first lessons in sharing as they exchange
or share toys and personal possessions among family members and friends.
Remember that children learn by example. When children see
parents and older brothers and sisters sharing their resources, it will become a
natural thing for them. Encourage children to share all types of resources,
including their time, material possessions, skills, and creativity, as well as
their finances.
Encourage a child to contribute to community, religious, or
other worthwhile projects. Sharing helps the child develop a concern for the
welfare of others by taking him/her beyond the familiar circle.
Things to Do
Family
- Plan a family outing or vacation. Determine how much it
will cost and plan how the money will be saved. Let all family members have
a role in reaching the goal of a trip together.
- Visit financial institutions. Learn about their services
and open a saving account.
The Preschooler
- Help your child make a bank. Talk about why you put money
in a bank.
The 6- to 12-Year-Old
- Open a savings account. Be sure the child understands
that he/she is not giving their money away but that it is going to grow and
that they will have more when it's taken out. Some children fear they will
never see their money again if it is put into a bank.
- Make plans for gifts for birthdays, holidays, or other
special occasions. Help the child understand the concept of saving and
sharing.
- Show children how they can use resources other than money
to reach goals. They might use their time and skills to make gifts. For
example, they could make a bank for a younger brother or sister, for
example.
- Plan a "Making My Dreams Come True" session.
Ask the children to list their wants and needs with what they want the most
first. Have them estimate the cost and plan how much per week they will need
to save to make the purchase. Record the want or need on the clouds
following the table. Use the largest cloud for the most desired item. Also
record on the cloud the date the child believes he/she can make his/her
dream come true. Discuss plans. Evaluate the outcome.
| # OF WEEKS TO REACH GOAL |
MAKING MY DREAMS COME TRUE |
| Item |
Est. Cost |
Sav. / Week |
Item |
Est. Cost |
Sav./ Week |
| 1. |
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1. |
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2. |
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| 3. |
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3. |
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| 4. |
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4. |
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| 5. |
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5. |
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| 6. |
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6. |
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| 7. |
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7. |
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| 8. |
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8. |
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The Teenager
- Provide the teenager opportunities to learn about savings
and investments beyond the savings account.
- Encourage long-range planning. You could use the
"Making My Dreams Come True" activity with teenagers, too.
- Carry through with the idea of sharing with others.
- Help the teenager understand the value of evaluating
actions and how one learns from actions, whether successes or failures.
Lesson 4
In our next lesson we will explore the "how" and
"whys" of a spending plan.
Additional information from your
county
Extension office:
Financial Fitness Series: Build Your Savings, FSHEC-43
Savings Choices for Beginning Savers, FSHEC-50
The information given herein is for educational purposes
only. Reference to commercial products or trade names is made with the
understanding that no discrimination is intended and no endorsement by the
Arkansas Cooperative Extension Service is implied. This material was originally prepared by Joyce H. Jenkins,
Extension Family Resource Management Specialist, and Naomi H. Willis, Extension
Instructor of Home Economics, and is being used with permission of Clemson
University Cooperative Extension. Recommended to Arkansas by Wanda W. Shelby,
District Extension Family Resource Management Specialist, University of Arkansas
Cooperative Extension Service.
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