As the managing director and senior vice president of investments at Raymond James, Lisa Detanna provides clients with a wide range of financial services, including financial planning, tax planning, insurance planning, and multi-family office services. In addition, Lisa Detanna co-wrote a children’s book titled Treasures in the Winter Vault, which teaches children about money.
Teaching children to save money is important. This habit may help them attain financial independence when they become adults. Children need simple explanations and practical demonstrations to reinforce understanding. An ideal way to push the envelope of verbal training is to get a piggy bank, a transparent container, or a jar for your child. Visuals add to the training.
With a clear piggy bank or jar, children can see that the amount of money they put into the container each day increases. Preschoolers who value money in terms of the number of dollar bills and coins they have can also see that the number of notes of money or coins increases as they continue to save. This helps illustrate how saving makes them have more money.
You should also show your child how saving money helps them afford things. For example, a kid who has $5 and is looking to get a toy that costs $20 can understand the importance of saving as they continue setting money aside toward that goal. When they have saved enough money, you should take the required amount of dollars from the jar in their presence and take it to the store with them. They should see when you are handing over that money to the cashier in exchange for the item.
