How to Use Summer Vacation to Teach Your Kids About Money
Summertime--and the livin' is easy--but what do your kids know about making a living? Use the middle three months of the year to help your kids develop a sense of fiscal responsibility. Here are some ways to do it.
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Instructions
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Have your kids get summer jobs working for an outside employer. This will give them a chance to learn the basics, about dealing with a supervisor, showing up on time and so forth. They will also get impartial feedback about their work in this manner, which is important.
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Go over their paychecks with them and explain in basic terms what taxes they are having withheld, if any. Familiarize them with terms like FICA and FUTA and help them see the impact of taxation upon their financial lives.
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Use your best judgement about providing them with an allowance; if they are responsible with their money and willing to work, then you may want to consider tying their allowance to a set list of chores.
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Foster the habit of saving by perhaps providing a small incentive; if your child saves faithfully all summer to buy a useful item, such as a computer, be willing to match some portion of that savings as a reward, so that he or she could get a printer too.
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