Financial activitities for Kids.

Children can learn about planning ahead, waiting for things they want, and finishing what they start.

1 YOU NEED MONEY to buy things.

Activities to help your kids reach this milestone

  • Identify coins and their value.
  • Discuss how you may value something thatmais free, such as playing with a friend.
  • Identify items that cost money, such as ice cream, gas for the car, or clothes.

2 You earn money by WORKING.

Activities to help your kids reach this milestone Describe your job to your child. Walk through your neighborhood or town and point out people working, like the bus driver or the police officer. Explain that some people start their own businesses, like clothing stores or restaurants, and those people are called entrepreneurs. Encourage your child to think about how she could earn money by setting up a lemonade or cookie stand.

3 You may have to WAIT BEFORE YOU CAN BUY something you want.

Activities to help your kids reach this milestone When your child is standing in line for a turn on the swings, or looking forward to her favorite holiday, point out that sometimes we have to wait for things we want. Find three jars (or cans) and label one for saving, one for spending, and one for sharing. Suggest that your child put some of the money she gets into the saving jar, so she can buy a toy or treat when she has saved enough.

4 There's a difference between THINGS YOU WANT and things you need.

Activities to help your kids reach this milestone When you are out shopping, point out essentials such as food and clothing, and ask your child to describe items that she may want but are optional. Talk about how your family decides what to buy and what to pass up. Which is more important, buying cookies or fresh fruit? Soda or milk? Draw a circle and divide it into sections for food, rent or house payments, clothes, and "optional items," to show that there is a finite amount of money to spend.

5 You need to MAKE CHOICES about how to spend your money.

Activities to help your kids reach this milestone Include your child in some of your small decisions. For example, at the grocery store, explain why you pick one item over another. Give your child two Rands and let her choose which fruit to buy. When shopping with your child, ask yourself aloud: Do I need this item? Can I borrow it? Would it cost less somewhere else?

6 It's good to shop around and COMPARE PRICES before you buy.

Activities to help your kids reach this milestone With your child, compare prices for a particular toy at various online or brick-and-mortar stores. Use advertisements and discount cards, and show your child how much you are saving. Consider allowing her to keep part of the savings, if she helps clip or print out advertisement.

7 It can be costly and DANGEROUS TO SHARE INFORMATION online.

Activities to help your kids reach this milestone Know the websites your child visits. Decide which websites are appropriate, and block any inappropriate sites using parental control software. Make it a rule that your child never gives out any personal information—like her birthdate, address, phone number, or school—when on the computer. Don't allow her to buy anything online without your permission.

8 Putting your money in a savings account will PROTECT it and pay you interest.

Activities to help your kids reach this milestone Visit a nearby bank with your child. Ask about the interest rate on a savings account. Discuss with your child how money in savings accounts is protected. Open a Bilanci savings account for your child.

9 You should SAVE AT LEAST R5.00 for every R50.00 you receive.

Activities to help your kids reach this milestone Encourage your child to always save 10% of the money he gets. Have your child set a goal to buy something he wants, and have him work toward that amount. To reinforce the savings habit, show your child when you deposit savings into his Bilanci savings account and look at how much bigger the balance is on each visit. Consider a "matching plan" for your child's savings: You put in R1.00 for every Rand he saves.

10 Entering personal information, like a bank or credit card number, online is risky because SOMEONE COULD STEAL IT.

Activities to help your kids reach this milestone Discuss the dangers of entering personal information online. Explain that thieves can use id numbers or other personal information to open credit cards or create fake documents. Explain that "free" offers online, such as cell phone ringtones or games, are scams to get people to spend money without realizing it. Make it a rule that your child never answers emails from someone he doesn't know and never clicks on pop-up ads.

11 The sooner you save, the FASTER YOUR MONEY CAN GROW from compound interest.

Activities to help your kids reach this milestone Compound interest is when you earn interest on both the money you save and the interest you earn. Show your child the following: If he sets aside R100 every year starting at age 14, he'd have about R23,000 at age 65. However, if he begins saving at age 35 he'd have about R7,000 at age 65. Assume the account earns 5% every year. To compute compound interest, use the calculators at XXXXXXX – insert calculator Discuss how much your child can save. What will he have to give up? Is it worth it?

12 USING A CREDIT CARD IS LIKE TAKING OUT A LOAN

If you don'tpay your bill in full every month, you'll be charged interest and owe more than you originally spent. Activities to help your kids reach this milestone Discuss why you should not use a credit card to buy something that you can't afford to pay for with cash. Look at credit card offers online with your child, and compare the interest rates. Using the Credit Card Repayment Calculator at federalreserve.gov, see how long it could take to repay a R1,000 credit card debt by making the minimum monthly payments. Discuss how a credit card can be useful for making purchases online, or as a convenience.

13 When COMPARING COLLEGES AND UNIVERSITIES...

...be sure to consider how much each school would cost you. Activities to help your kids reach this milestone Point out that Graduates earn almost twice as much as people who did not go to college or University. Discuss how much you can contribute to your child's tuition and expenses each year. Compare college / university costs, graduation rates, Student loans, average monthly loan payments, and employment prospects.

14 You should AVOID USING CREDIT CARDS...

...to buy things you can't afford to pay for with cash. Activities to help your kids reach this milestone With your child, fill out the Income and Expenses budgeting worksheet available at Bilanci.co.za Discuss why having a savings and spending plan in place could help him avoid using credit cards. Drive home this rule: When you use a credit card, aim to pay it back in full each month; otherwise, you could be charged high interest. Using the Credit Card Repayment Calculator at Bilanci.co.za see how long it could take to repay a R1,000 credit card debt by making the minimum monthly payments.

15 Your first paycheck may seem smaller than expected since MONEY IS TAKEN OUT FOR TAXES.

Activities to help your kids reach this milestone Discuss the difference between gross pay (before taxes are taken out) and net pay (the amount you take home). Explain that tax brackets vary depending on how much you earn. Discuss what taxes pay for, including schools, road maintenance, and medical help for the elderly. Once your child has a steady job, help him set up an automatic savings program so that at least 10% of earnings goes directly into his savings account. 16 A great place to SAVE AND INVEST MONEY you earn is in a Bilanci portfolio Activities to help your kids reach this milestone If your child has a job, encourage him to buy a retirement anuity Explain that a RA allows the interest you earn to grow tax-free for life. Use the "Rule of 72" to estimate how many years it would take to double your money. If you invest in an account that earns 8% interest, you'll double your money in nine years (72 divided by 8 is 9).

17 You should use a credit card only...

if you can PAY OFF THE MONEY OWED IN FULL each month. Activities to help your kids reach this milestone Paying bills late can hurt your credit history and affect your chances of getting a job. Look for a credit card with a low interest rate There may be an emergency expense that you can't pay off immediately and need to charge. That's why it's important not to charge everyday items.

18 You need MEDICAL AID

Activities to help your kids reach this milestone Comparison shop for insurance like you would for any other product. If your parents have medical aid, see if you can stay on their policy—compare what different medical aid companies allow. When you apply for a job – enquire if they company subscribe to a medical aid and if they co – contribute towards the monthly expense.

19 It's important to save at least three months'...

...worth of living expenses IN CASE OF AN EMERGENCY. Activities to help your kids reach this milestone Make a list of your expenses (rent, bills, food) to see how much you spend each month; this will help you estimate how much you'll need to save for three months' worth of expenses. Store the money in a safe place, like a Bilanci Savings account. If you're able to, try saving six to nine months' worth of living expenses instead of only three. Don't stop once you've built your emergency fund; try to automate your savings so you stash away 10% of your earnings.

20 When investing, consider THE RISKS AND THE ANNUAL EXPENSES.

Activities to help your kids reach this milestone Invest in an Retirement Annuity or short term investment At Bilanci investment as soon as you have some income and the first R30000.00 is tax free per year. Putting all your eggs in one basket can be a risky way to invest; consider a diverse mix of stocks, bonds, and cash. Think about your goals. Attending college? Buying a home in 10 years? Purchasing a car in five? Define two financial goals for the long term future, and make a plan to achieve them.


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