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What gift are you planning on giving your child this holiday season? How about the gift of financial responsibility? I’m Kristin Arnold with your Bankrate.com Personal Finance Minute.
Parents looking for smart ways to educate their children about holiday shopping can turn to some new tips from Wells Fargo bank. The tips seek to help teach children good financial habits for the holidays and throughout their lives.
First, set a spending budget for the holidays; explain your budget to your children and explain why it’s important. Getting a child involved in finances can help trim the budget while getting them excited about ways to give without spending a large amount.
Instead of buying your child another gift, open a bank account and give the child the gift of savings. Teach the child how to make deposits and withdrawals, track transactions and balance the account.
Start saving now for next December. Set aside a specific amount from your first paycheck of 2012 and your child’s first allowance in January for next year’s holiday spending.
A lasting gift to your child doesn’t mean the latest toy or gadget. The gift of financial knowledge will stay with them throughout their life and be the most valuable item you ever give.
For more financial tips, visit Bankrate.com. I’m Kristin Arnold.