PHILADELPHIA (KYW Newsradio) — With money comes responsibility, even for children. As kids receive cash in lieu of gifts this year, the holiday season is the perfect time to teach financial literacy to kids — no matter their age.
Stephanie Gambone, president and CEO of Junior Achievement of Southeastern Pennsylvania, says teaching the value of money early is important, because kids don't really see cash transferred anymore.
“It's like there's just this money out there in the universe somewhere, and we're, you know, we're accessing it. And so I think we also, as adults, need to remember that young people's view of money, literally, what they're seeing, is very different than our own reality.”
So when kids are gifted cash this year, some may immediately start making plans to spend it. But Gambone says kids should divide money into three categories: Saving, spending and sharing.
“It really helps them think about balancing their resources, even if it's only $10 or $20 whatever the amount may be,” she said.
“Think about something that maybe they really want, and right now it's not feasible, and can they put some money aside to maybe purchase it in a few months, something that they want right now and it's really important to them.”
She says adults lead by example, so as children see you make donations to causes you support, explain to them why, and encourage them to do the same.
“I love, during this time of year, to really help our young people across the region to think about the importance of giving — finding a cause that they might believe in or that's important to them — and give something — even $5, and how that can really go a long way.”
She says kids should also set a savings goal, learn about budgeting, and open a savings account.