It’s November and that means that it’s Financial Literacy Month. It has always been a passion of mine to help individuals get a better understanding of how to manage something that we all work so hard for, which is money. I thought I would share some of the fun ways that I used to get my client’s children excited about setting goals and saving for the future. At Yellow Brick Road – Coaching and Consulting, we also provide one on one and team coaching support to Financial Planners and Advisors to help them build stronger and lasting relationships with their clients.
Before we get started there is only one rule, you must get involved in the fun. The more you share your stories about savings and reaching financial goals with your children, they will be better able to fully experience what that should look and feel like. Not all savings stories have to be perfect. There should be some that show the challenges and some mistakes along the way, but that’s okay. Sharing those challenge provide great learning for all.
Let’s get started!
1. Play Board Games That Involve Money
Family board night maybe a thing of the past however, here are some classic board games that you might have forgotten that do a great job of experiencing risk and reward on money. These are “Monopoly” and “The Game of Life”. These allow your children to tangible feel what it is like to have money and demonstrating purchasing power and responsibility. In Monopoly, you have the chance to be a real estate tycoon by purchasing properties and build homes and hotels, while collecting rent. While in The Game of Life, you start by picking a profession and coming across different life scenarios, like buying a house, getting married, and having kids. It great to see how parents and children react to these financial decisions and sharing their thought process. Also, a huge opportunity to spend some dedicated quality time outside our electronic devices.
2. Build Your Own Piggy Bank / Savings Goal Chart & Look for Deals
These fun exercises involve understanding what your child wants and coming up with a savings strategy to get there. Not all the items that we want come instantly, and such an important life skill to develop. This may get your children involved in chores around the house for fake money like “Stars”, or an allowance to demonstrate how long it will take to receive that item.
Another great way to get them their potentially faster is get them to do some research looking through flyers. This will help assist them in being a well-informed consumer, and a great opportunity to show them how to stretch their dollar. Click here to see an example of a Savings Goal Chart or Build your own Piggy Bank.
3. Matching Your Children’s Contribution
It’s a simple idea and one that employers have used to help their employees save for their retirement. Why not do a similar exercise with your children? It could be something as simple as dollar for dollar. The key with this exercise to share the experience together. Set a time so you both can put the money in together to celebrate their hard work. It feels great to be on board and working together with someone that has a vested interest in your success, like a parent with their child.
Even though these ideas may be fun, the key is following through and being consistent. Just like any savings strategy, it just doesn’t happen overnight. It takes time. Once they have reached those goals, make sure you celebrate, make it a big deal, and recognize their / your hard work. Just like the advisors that I have coached in the past, more conversations that you have about saving will lead to better understanding of how you manage your cash flow.
If you like this article and think that other parents could benefit from it, please like and share it with your community. Financial literacy is a challenge where we can all make a difference. Also, if you are looking for more articles like this one, check out the article section on our website. New content is added monthly, and don’t miss a post a Yellow Brick Road post on your feed by getting on our Monthly Newsletter. Click here to subscribe.
As always, your Yellow Brick Road awaits.
James Amarelo - Founder
Yellow Brick Road - Coaching and Consulting