Opening a Bank Account
How to balance your budget and accounts
How to pay bills and write checks
also how to begin retirement saving
It appears that as a result, some of the concepts we teach children are lacking.
We concentrated on budgeting and account balancing in the last article. We even considered the activities and competitions you may organize for your children. In the third of a four-part series, we'll discuss how to educate kids to write checks and pay their expenses.
When numerous parents recently reported that their children were planning to send cash to settle a bill, I was a little taken aback. The obvious might not be that evident after all.
Since paying bills online is common, it's crucial to teach children how to safeguard their online identities and save their login information securely.
The only method to pay your bills at these businesses, which are still quite a few, is by sending a check in the mail.
Every child ought to understand the importance of NEVER sending cash and how to write a check expressly for paying bills. For instance, provide your account number and any other necessary information in the memo.
Writing checks is the subject we will discuss next.
I attended outdoor education when I was twelve years old. Oddly enough, part of the experience was that we had to balance our register and budget because we could only pay with checks to purchase goods there, and our parents had put a set amount of money in our accounts.
The majority of the students were anxious! They had trouble filling out checks, so it was a perfect opportunity to learn. We had to fill out the amount in cursive, and I remember being anxious because I had problems fitting it into the available area.
Many young people today don't even consider writing checks because there are so many other, more prevalent ways to do business; but, I have still needed checks in the past to pay bills, pay contractors, and even get by when I forgot my wallet.
I've also discussed the risks of using and depending on a debit card in my earlier posts.
Therefore, how do you teach your children to write checks, and why should they care?
Making up a cause for youngsters to write checks is the most effective and engaging approach to teach children how to manage a checkbook.
Here is how to accomplish it:
Give your children an old checkbook, have them play with one, or create your own (complete with a register). Then let them know that checks will be required in order to obtain specific household items. For instance, there may be a leasing price associated with using their electronic device, for which they must send you a check.
You may also assist them balance and budget their expenditures by providing them with a monthly budget. To ensure accuracy at the end of the month, you should balance a different register.
This game is a huge hit among children.
What you can charge for includes the following:
using digital devices
observing TV (by the hour)
special delights or snacks
Rent for a bicycle
escaping from a task (limited usage)
If your kids maintain a positive balance at the end of the month, they receive a reward. If you have multiple children, a prize may also be awarded to the one who balances their register with the greatest accuracy.
Cut off the privileges if they run out of money is an alternative. While some may find this harsh, it does reflect reality.
The majority of children enjoy learning how to write checks because it makes them feel more adult-like.
We'll go through how to start saving for retirement in the upcoming piece. It might mean over $200,000 in the end!"""