Show me some GREEN, please!

Yes, the banks are going to start charging you a fee for using your own money! Yikes! Over the past few years, most of the banks have either instituted new fees or increased existing bank fees. All in an effort to make up for lost revenue.

So, how does this relate to teaching our kids and teens about money and financial responsibility?

Start with the green stuff. That’s right, pay allowance in cash. Let your kids learn to count and verify they were paid the correct amount. Next, they should split their allowance into the three categories:

1.    Spending – this should be about 70% of their allowance and they can keep their cash safe in a wallet or other container. For teens, you can consider a high school checking account. Take your teen to the bank and have them ask the bank questions about the account such as, balance minimums, check fees, monthly fees, ATM fees, Debit card fees, other fees, etc.

2.    Savings – this should be about 20% of their allowance and they can start a piggy bank or other container. When the cash starts to pile up, take your child to the bank to open a savings account. Have your child ask the bank questions about the account such as, balance requirements, number of free deposits and withdrawals allowed, interest rate earned, other bank fees, etc.

3.    Sharing – this should be about 10% of their allowance and they can start a ‘sharing container.’ With your help, have them set a goal of an amount and charity to share. Research the charity to see how they spend their donations.

Our kids and teens don’t see enough cash. They see us use plenty of plastic and now there may be new fees for the convenience. It’s important for our children to learn to ask financial institutions lots of questions about their services.

You are teaching them to be an educated financial consumer!