Teaching Kids to Use Checkbooks
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When
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The earlier children learn how to manage money, the easier the transition will be when they are out on their own taking care of their own finances. Addition and subtraction are typically taught to children in the third or fourth grade, which is a perfect time to introduce them to the practical applications of using a checkbook. As children become more accustomed to the process, consider opening a checking account in their name, especially if they receive birthday or Christmas checks. This is also a good time to introduce the debit card and teach them how it interfaces with the checking account.
How
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In the early elementary school years, children enjoy helping their parents. Begin the process of teaching kids to use checkbooks by having them help you with your check writing and balancing duties. Take them to the bank and show them how to fill out the deposit slip for your paycheck and let them hand it to the teller and receive the receipt. Allow them to enter the amount into your checkbook so they can understand the correlation between deposits and withdrawals. If you utilize direct deposit and on-line banking services, let them see the web pages and enter the amounts. Let them do the subtraction and addition on a separate piece of paper and give you the results. Once verified by you, allow them to enter the figures in your checkbook
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What
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Bring your children further into the process of handling a checkbook by letting them watch you balance your checkbook against a monthly statement. Have them read off the amounts while you mark them in the check register. Reverse the duties the following month. During the process, explain the importance of monthly checkbook balancing. Present them with a scenario of writing a check with insufficient funds in the bank to cover it. Show them what the penalties will be. Compare the $30 or $60 bounced check charges and what kinds of toys that amount might be able to buy.
How
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Before they open their first checking account and take on the responsibility of keeping it balanced, consider purchasing your children a toy checkbook in which they can practice. Fat Brain Toys sells a checkbook with calculator in which children can practice writing checks, recording deposits and balancing the checkbook. The play checkbook sells for $15.95 (see link in Resources). Sites such as the MoneyInstructor.com offer practice checks and tutorials to help explain the process to children (see link in Resources).
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Resources
- Photo Credit Suresh
