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Summer Vacation:
An Opportunity To Teach Financial Skills |
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As the weather turns warmer and the summer months get closer, everybody knows what’s on the mind of practically every student in the country: Summer Vacation.
Many students are also looking forward to an opportunity to get a part-time job and save some money for down the road. Teenagers, especially those still in high school, are heading toward a time in their lives when a healthy savings account will be a great benefit, especially if they are planning to attend college, need to buy a car, or may not want a job to conflict with their studies.
For younger kids, who aren’t old enough to legally get a job, this lesson is still an option. After all, even a ten-year-old has a desire for money, whether it’s for pocket money or an actual purchase. Combine that with the fact that every household has chores that need to be done, and you have a perfect opportunity to teach some valuable lessons. In fact, because most parents give their kids an allowance, by attaching some responsibilities to the money they receive, kids learn the connection between the work they do and the rewards and privileges they receive.
The most important aspect of this lesson is accountability. Whether the money comes from a part-time job, household chores, or an allowance, kids tend to appreciate it more if they have to budget it. That means that you, as a parent, can’t bail them out if they overspend. If your child ends up completely broke two days before payday or allowance day, and you give them an advance, not only are you missing out on the financial responsibility lesson, you’re teaching them that someone will always be there as a safety net every time they fail. And that negative lesson stretches much further than just money.
Summer jobs are also a great way to teach your kids that the work they do is something they can take personal pride in. However, it isn’t an automatic benefit that results simply from their employment – it’s up to you to drive that point home by asking questions and being genuinely interested when they want to talk about work.
Also, remember that the most powerful instructional tool a parent has is the example they set. If you want your son or daughter to have pride in their work as an adult, you need to communicate that you have pride in your work now. If they only see you complaining about your employer and your job, they’ll learn that work is a burden to be resented and even avoided.
Typically, children will respond favorably to support from their parents, and a great way to show that support, as your child begins their summer job, is to match their savings at 50 cents on the dollar. Make an agreement with them that, at the end of the summer, whatever they have in the bank, you’ll add 50 percent to the total. In fact, draw up a contract and have both parties sign it. The benefits you’ll see in your child will be worth every penny.
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