Saturday, April 17, 2010

First Lessons in Money Management

Hunter opened his first bank account today. With about $24 from his bank we went on a field trip to the bank to open his own savings account and begin the first of the bigger steps towards financial literacy, creativity and responsibility.

If there is one thing that is big on my heart, it is teaching my son important life skills like this. You can be an intellectual genius but if you're lazy, or irresponsible, you won't get far in life.

Some things he already knows about money:
  1. Names and values of US currency
  2. A basic understanding of the concepts behind banks and ATMs (that is, that we have to put money into the bank in order to get it back out of the bank)
  3. That you can't just "get" money but have to do something for it, i.e., work (although he still tends to mention every once in a while, "Well we'll just buy it!" as if money grows on trees)
  4. That it's important to keep receipts from your purchases (he loves keeping receipts and thinks its really cool)
  5. And after today, an introduction to the idea that when you keep money at a real bank instead of a piggy bank, it grows because of interest.
But, he obviously still has a lot to learn.

I think this bank account will be a great learning experience for him, talking about interest, keeping track of the account and how it grows, and having financial goals, for starters.

"For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it."
Ecclesiastes 7:12
Hunter is 5 years, 1 month old

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