Tips for Helping Kids Manage Holiday Cash

Tips for Helping Kids Manage Holiday Cash

(NewsUSA)- According to the AARP, grandparents spend $30 billion annually on their grandchildren.
As children receive monetary gifts in lieu of toys, clothes and other items, the holiday season is an opportune time for parents to teach their kids about personal finance basics and the responsibilities associated with managing their own money.
"By using a bit of creativity, it's easy to teach children important monetary habits that will last a lifetime," said Mark Resnick, director of sales for NetBank, the country's oldest active Internet bank.
NetBank offers the following ideas designed to provide children with rewarding ways to use their holiday gift money:
* Place holiday gift money into a money market account, CD or other savings vehicle. By doing so, your children will be able to see their money grow along with them. As part of the initial investment, have them write down their short- and long-term savings goals. Review these goals periodically and show children how quickly they can be reached by not spending all of their money right away. Encourage them to begin saving for college with part of their allowance, or wages, each month for their education.
* Teach children about the gift of sharing. The holiday season is the perfect time to think of others. Help your children find a local charity to donate their money to, or go shopping together for a new toy or clothes for another child in need.
* Show your children the ABCs of banking. By opening a bank account in your child's name, you can teach the responsibilities associated with money management.
A fun and easy way to manage money together is through an online banking account. According to a recent study from the Pew Internet and American Life Project, 87 percent of teens between the ages of 12 and 17 use the Internet.
"A monetary gift is one a child will never outgrow. It gives them the opportunity to make to make responsible and independent decisions," Resnick says.