Raising money-smart kids: how do you do it?

Have you set up your kids savings account at Ent and gotten your free ticket to the zoo and super-soft elephant plush yet?  Time’s running out – you can of course set up an account anytime, but the special offer ends August 31st!

Of course, setting up a kids’ savings account is great – but teaching your kids to be money smart won’t automatically happen when you set up a savings account.  Ent’s Parent’s Guide To Raising Money Smart Kids suggests a few ways to go beyond just setting up an account and actually get started educating your kids about money:

• Involve kids in dicussions about finances early.

• Lead by example.

• Explain the differences between wants and needs.

• Make saving a habit.

You can download Ent’s booklet for free right here (PDF).  It’s got some great information and links to websites designed to educate children and families about money.

My 3 year old’s recent deposit of 5¢ was quite likely the smallest deposit at Ent that day!

We recently created a chore chart for our 3 and 5 year old, with simple tasks they can do to earn money.  Each task has an assigned value, which has helped us be much more consistent.  Though we’d given them paid chores in the past, it was sporadic at best, and the written chart has definitely helped us stay on track.  Plus, they’re motivated to do the harder jobs more when they see that they pay more!

Our kids can choose to put the money they earn in a cup that’s designated for giving at church, one that’s designated for saving, and one that’s for spending.  They love the thrill of making a deposit into their account at Ent, so at this age it’s easy to encourage them to save!

I’m curious what practical things you’ve done with your kids to teach them about money.  How do you help kids differentiate between wants and needs, perhaps especially as they go back to school this month and are exposed to a whole host of new “have to haves”?

Do you discuss the family budget with your kids, or perhaps go over the statements or online banking for their own accounts?   Are there any house rules to what your kids do with birthday or other gift money?

Please share your ideas and tips in the comments!