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Teaching Children the Value of Money

This time of year, as bankers are visiting schools for an event dubbed, "Teach Children to Save," a financial counselor says parents can and should begin those lessons at home.

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Reporter: Jodi Baker

This time of year, as bankers are visiting schools for an event dubbed, "Teach Children to Save," a financial counselor says parents can and should begin those lessons at home.

Even at the preschool age, children enjoy playing with money and making pretend purchases with toy cash registers. Dr. Lori Lothringer, who heads the Financial Planning Department at Metropolitan Community College, cautions against glamorizing anything involving money or credit cards, by steering clear of those kinds of toys if they have character themes like princesses. “That,” she said, “equates money with beauty.”

Leading by example is also important, she said. It starts with a strong work ethic. With that in mind, she said allowances for chores are helpful.

"Helping our child save for a special purchase, such as a bike or toy, is a wonderful opportunity to teach them to save,” she said. “And seeing mom and dad work together on a budget is an opportunity to teach the kids with each other, in regards to money in a loving and respectable environment."

She also advised parents take opportunities whenever they can to teach common sense strategies for smart financial decision-making. “Taking a list to a grocery store is a great teachable moment,” she said. “When we go in with a plan, we are most likely to spend less time in the store, and as a consequence, spend less money."

Right now, Lothringer said, as families are beginning to plan summer vacations, children can learn by being part of the process. “So that they understand if we spend more money on the hotel or eating in the restaurant, as opposed to packing a sack lunch, that we're not going to have as much money for the souvenirs. We'll enjoy the planning process before we go, and we'll help to eliminate quite a few of the conflicts once we arrive,” she said.

In addition, she said there’s a good variety of children’s books, which either deal with money or broader values and teach valuable lessons.