Todays Electronic Banking systems...do Kids understand it?

A child overhears his parents say they don’t have money to purchase something and that child chimes in and says, “You do have money, just use that plastic thing in Mommy’s purse.” As this is a cute story it is so real to so many people. Usually, over 70% of people use credit cards to pay for goods these days!

As your child gets older they start to “get it” but young children don’t know were money comes from and were it goes because they don’t “see” it being exchanged anymore! So how do you fix this. Start showing your statements to your children. Show the bank statement were money is deposited, show the credit card statement were all the “stuff” is being purchased and then show the bank statement again showing you paying for all the stuff you just bought / charged.

Make sure you are incorporating some math skills: Money deposited is a positive number and money paying the credit card is a negitive number. The answer to the math question should be a positive number, if not then you don’t have money to buy it! It’s as easy as that.

Save your coins, Susie Saver

P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com

Financial planning lessons are posted two times a month. Next lesson on, “Allowance: When and how Much”