My son is 5 years old and I decided it was time for him to have a savings account. Some people may feel 5 years old is too young, some may feel he should have been saving money a long time ago. That’s the beauty of being a parent and having different philosophies, there is no wrong answer considering all are in agreement that a child SHOULD save money.
The decision for my son and me to open an account for him came about suddenly. With my children, I link a milestones in their life as an introduction to more advanced skills. For example, when my daughter gave up her pacifier, I made it a big deal, let her know she is now a big girl which meant no more crib. Because she reached the milestone of the giving up the pacifier, it was also time to give up the “baby bed” and transition to a “big girl bed.” My son had a very similar experience, with a few additional cues letting me know that developmentally he was ready and had a deeper concept of a bank, money and what money is used for.
My son lost his first tooth on New Year’s Eve. He had been waiting for this moment for weeks, wiggling the tooth, looking at in the mirror and wondering what the tooth fairy was going to bring him! Earlier that day we were at the store and for the first time, he was constantly asking me to buy him things. Not only was he asking me to buy him various items, he would then say, “not today mommy, you don’t have any dollars?” That was a good conversation starter. I asked if he had any dollars. He said he didn’t have any dollars, but that he had lots of little money (coins) in his piggy bank at his dad’s house. The conversation continued as I gauged his level of understanding.
As we returned home, it hit me: let’s link the losing of his 1st tooth to the opening of a savings account! Logically or developmentally are they at all correlated? No, but coupled with the conversation in the grocery store and the “need” for a reason, it made sense (parents are so innovative!). My son was excited and continues to be excited. He talks about his bank account and his money with his little sister, who is now also eagerly awaiting her first tooth to come out. My son knows he has his own money, and that if he wants to buy something he has to have enough money in his account.
As my children get older, more mature and develop an even deeper understanding, the conversations will change, the expectations on how much they will save vs. spend will change and through it all, my children will have a say so. Why shouldn’t they, it’s their money.
My goal is to give my children what I didn’t have. My first savings account wasn’t opened until I was in my 30′s. Saving money was a foreign concept to me. My mother was an excellent example on how to save money, on how to live on a budget, she taught me about necessities vs. wants and I never lacked for anything. But I had no idea HOW she would budget her money. I had no idea WHERE she saved, what 401k meant or WHY she was even saving money. All of that will change with my children.
Yes, my son is only 5 years old. But for the past 5 years he has watched his mommy make purchases for him and his sister, put gas in the car, buy food, pay tuition and purchase everything else that is needed, with no explanation. The savings account opened also aligns with what he is learning in kindergarten. Money was introduced in early December so in essence, I am enhancing what’s being taught in the classroom.
Can I stop the negative influences thrown at my children day in and day out in the media, at school and by other family members? Of course not. But I can teach by example, limit access to media and instill core values early on. The goal is to start young, teach young and continue to oversee and guide your child as they grow, earn more money and are presented with more options to spend and to preferably, save.
