Teaching Your Kids About Giving
‘Tis the season of giving, which makes it the perfect time to teach your kids the importance of planning not just for spending or saving, but for giving, too. This article is part of a series on teaching kids about money, and you can start good habits with our article, “Teaching Kids About Saving.”
Plan for Giving, Saving, and Spending
As a family, it’s a good idea to talk about how you handle money, including giving to charitable causes. Teach your children to set aside money for spending, saving, and giving. An easy way to do this is to set up three “banks” using jars labeled Spend, Save, and Give. A clear container lets them see how much they’re building up over time. Decide together how much should be added to each bank, stressing that saving up for big items is better.
Next, talk about how much they should add to the Give jar. It could be 5-10% of the money earned, but even a little is better than none. Show your child that for every $1 earned, they should take out a nickel or dime to put aside for giving. Watch as the coins add up, then set a schedule to give to their favorite cause.
Gift Giving for the Holidays
To ensure your child doesn’t overspend on gifts this holiday season, list those they plan to give to, what gift they have in mind, and how much they’ll spend. Then stick to the list when they’re shopping. When planning holiday gifts, discuss with your children how they would like to give to others. Besides giving gifts to friends and family, they might also want to give to local charities.
Another way to plan their gift-giving is to start with the total amount they’ll spend during the holidays and divide it among the people on their list. If they want to spend more on family members and less on friends, make those adjustments and add them up to ensure they’re not spending more than they have in the Give bank.
Reward Their Good Deeds
It’s easy to plan for giving, spending, and saving with Texell's Dollar Squad accounts. These savings accounts for those 12 and under earn interest, and every dollar deposited earns one Squad Dollar to use in the online store! Your child will be rewarded for smart giving and saving habits by picking out fun prizes.
Whether your children are still young or entering their teens, Texell has accounts to help them with their financial journey. Visit Texell.org/youth to learn more about Dollar Squad and teen thr!ve accounts. You can also schedule an appointment at any branch to open an account today.
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