Joseph Cianciotto: Teaching Kids How to Handle Money

 

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Important Money Lessons for Kids by Joseph Cianciotto

Teaching children the value of saving money is one of life's toughest lessons. Unfortunately, kids tend to prefer spending over squirreling away their hard-earned cash--anything that catches their eye can quickly become an irresistible temptation. But with creative guidance and motivation from parents, encouraging young savers to embrace financial security can be achievable.

Starting them on the path to financial literacy can be as easy as gifting a piggy bank or glass jar, but Long Island father Joseph Cianciotto believes more is needed along that journey. He insists parents remain involved and hold their children accountable for responsible money management decisions.

Today, Joseph Cianciotto looks at how parents can teach and motivate their children to save money.

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First, a parent can open a savings account. Children can acquire a sense of financial responsibility by opening a bank account. As long as it's explained in a manner that makes children want to save, opening a savings account for them would be a terrific idea. It is a good foundation they will carry on when they grow older.

Next, Joseph Cianciotto says parents should talk to their children about wants versus needs. Parents should regularly explain the need for savings. Teaching kids the difference between wants and needs is crucial to instilling good spending habits early on. Parents can help their children learn these concepts through a daily budget, allowing them to make informed financial decisions when determining which items belong in either category.

Then, there are goals and incentives. Kids are known for wanting the latest and greatest, but this can be transformed into an opportunity to nurture healthy financial habits. Parents can foster long-term money management skills with their children by offering incentives like helping finance a purchase after they've met certain savings goals. With a little nudge from mom or dad, kids will be more motivated to save smart.

Joseph Cianciotto is an executive creative director and lives in Long Island, New York, with his wife and two daughters. For more articles on parenthood, visit this page.