Are there things that grandparents can specifically teach kids about money? – Often we try to shelter children from the effects of financial hardships when instead grandparents can use this as an opportunity to teach financial responsibility. Showering our grandchildren with gifts and spoiling them does not teach them to be financially responsible. Grandparents can teach the value of a dollar in many ways.
Why might a grandparent be a more effective teacher or financial example than a parent? – Grandparents can be a more effective teacher than a parent because grandchildren often look up to their grandparents and can learn from them when they lead by example and guide them through the thought process to financial responsibility. Also, with both parents working in many families today, grandparents often have the one-on-one time to spend with their grandchildren that can be difficult for a parent.
What might grandparents teach kids about the value of saving? And how can they teach that? – Teach them how money should be allocated as soon as they are old enough to understand. They should save at least half of every dollar they receive as a gift for birthdays, holidays, etc. Part of the rest should be donated to a charity that they can relate to. The balance they can spend on themselves but should plan how they want to spend it. The grandparent can guide and remind them of things they had talked about before such as wanting a new bike, etc.
What are the three most important money-related tips a grandparent can teach their grandkids?
- A portion of every dollar they receive should be saved
- It is good to give to others less fortunate. It is so helpful for them and feels good to us as well.
- A portion is for them to spend and enjoy – but not all of it.