Bankers Offer Advice to Kids About Saving, Spending Money
By Dave Woods | Official Kids Mag
Jamie Vaughn and Annette King know a lot about banking. They also know a lot about kids. The two moms, who both work for First Security Bank, often counsel their kids (and adults) on the ins and outs of financial responsibility. They think that if you offer advice to kids about money, they will take better care of it as an adult.
Jamie, a retail operations manager for the bank, admitted… she wasn’t a good saver as a kid.
“The biggest thing that I tell younger kids coming in to open their first checking or savings account is it’s important not living paycheck to paycheck,” she said. “You need to have a little security. If you need money, you have it. If you have a big purchase coming up you don’t have to stress about it. It’s a lot easier if you have a plan.”
Annette, the bank’s vice president of marketing, teaches her kids responsibility along with financial skills.
“We have a responsibility chart at home,” she explained. “Each kid, depending on their age, has different chores. They get checkmarks. Every time they get a checkmark that determines how much money they get paid. If they don’t do the work, they don’t get paid. The same as a job. It’s the American way.”
Jamie said she is often surprised at how adept kids are when it comes to financial decisions.
“They want to keep their money, but spend everybody else’s money,” she said, laughing. “They are a lot better about saving than they think they are. If your money has a purpose, you have a plan. I don’t think it’s ever too early to start saving.”
Annette regularly talks with her kids about the plans for their money and what is the responsible way to handle it.
“On Saturday they get their pay,” she explained. “We talk about how you put some money into savings, how some money is for spending and some money for Jesus.”
But, she admits… kids are kids.
“My kids like to spend money as soon as they get it,” she said. “They like to go buy basketball cards and toys, but we talk about how to save your money so you can buy those bigger items.”
Jamie often teaches saving and financial responsibility classes for kids who are opening up their first savings or checking accounts. She said the message is pretty simple.
“We talk a lot about needs versus wants,” she explained. “Is this something that you need to have, or just something that you want to have? That’s what we focus on.”
Annette said something as simple as a piggy bank can start a kid down a successful path to saving.
To save or to spend?
that’s the question
By Dave Woods | Official Kids Mag
Official Kids Mag recently sat down with a few kids to talk about saving money and the importance of wise spending. Each of the four kids we interviewed knew exactly how they want to spend their money, but saving was another issue. Like a lot of adults, money can burn a hole in a kid’s pocket. It takes some strong adult guidance to convince a kid to stash money away for a rainy day.
Hunter King, a kid of few words until he gets warmed up, likes to spend his money on important items… sports.
OKM: Do you like school?
Hunter: Yea.
OKM: Do you like math?
Hunter: Yea.
OKM: Are you good at math?
Hunter: A little.
OKM: Do you know any good jokes?
Hunter: (Tips head with a confused smile)
OKM: Do you save money or spend it?
Hunter: I spend it.
OKM: Where do you get money?
Hunter: I get it from Mom and Dad.
OKM: Do you have a job?
Hunter: I sometimes do chores.
OKM: Do you get an allowance for that?
Hunter: Sometimes.
OKM: What do you spend your money on?
Hunter: Basketball stuff.
OKM: What’s basketball stuff?
Hunter: A basketball? (Looks puzzled)
OKM: Was it a good investment?
Hunter: Yea.
OKM: Is it going to pay for college?
Hunter: Mmmm… Maybe.
OKM: That’s kind of an investment in your future.
Hunter: Yea.
Hunter’s little sister, Emily King, might just be a better saver than her older brother. But, she too, has some very specific things for which she saves her dollars.
OKM: Do you like school?
Emily: Yes
OKM: What’s your best subject?
Emily: Adding up numbers.
OKM: Are you good at adding up numbers?
Emily: Not really.
OKM: Do you want to be better?
Emily: Yes.
OKM: Why is it important to know how to add numbers?
Emily: I don’t know.
OKM: Do you save any money?
Emily: Sometimes.
OKM: Do you get money for doing chores?
Emily: Yes.
OKM: What’s the biggest money you’ve ever had?
Emily: $6.
OKM: Can you save money?
Emily: Not really.
OKM: What do you buy with your money?
Emily: Mostly lipstick.
OKM: You’re a lipstick girl?
Emily: I like makeup.
OKM: Do you know why it’s important to save money?
Emily: Yes. To buy more lipstick!
Allie Vaughn is a thoughtful 9-year-old. She too knows her ultimate saving goal. While some kids learn the value of money and saving by doing household chores, Allie prefers to bank on her head full of teeth – just waiting to fall out – to fill her bank account.
OKM: Are you any good at saving money?
Allie: Sometimes.
OKM: Where do you get your money?
Allie: I get it from the Tooth Fairy mostly.
OKM: How much money is the most you have ever had?
Allie: $20.
OKM: Why is it important to save money?
Allie: It’s good to save up for something.
OKM: What would that be?
Allie: Probably Hatchimal Eggs?
OKM: What?
Allie: (Looking like everyone should know) They are like these things in an egg and they hatch. There are like twins or you can get these mini versions.
OKM: That sounds expensive?
Allie: It is.
OKM: How much Tooth Fairy money does it take to buy Hatchimal Eggs?
Allie: About $30.
OKM: How long would it take you to save $30. That’s a lot of teeth to lose.
Allie: Well… probably about six teeth. I get $5 per tooth.
OKM: You have a very generous Tooth Fairy in your house. Why is it important to know about money?
Allie: I think it’s good to use math because you use it every day.
OKM: What should kids know about saving money?
Allie: I want them to know how much to save, give and spend.
Gavin Vaughn, Allie’s younger brother, is quick to respond to questions. He knows what he likes, the value of a dollar and exactly how much he has in his growing bank account.
OKM: Are you a good money saver?
Gavin: Yes.
OKM: Really?
Gavin: Yes!
OKM: How much money have you ever saved at one time?
Gavin: I have $22.
OKM: Do you have a job?
Gavin: No, I don’t have a J.O.B. I get it from the Tooth Fairy.
OKM: I hear you have a very generous Tooth Fairy around your house. Why did you save $22?
Gavin: I just wanted to save it because I wanted to spend it on a Transformer.
OKM: Is it hard to save?
Gavin: (Shaking his head affirmatively) Sometimes.
OKM: Where do you put your savings?
Gavin: My mom takes it to her bank.
OKM: You have a bank account?
Gavin: Yes.
OKM: Do you think all kids your age should have a bank account?
Gavin: Yes. So they can save it and spend it.
OKM: People think kids just want to spend money. Is that correct?
Gavin: I guess… I can maybe save it to $100 bucks, maybe.
OKM: Well, good luck with that.