Auburn Savings Bank
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Question: My child is very giving with his money, offering to give me his when I say things like “We can’t afford that right now because we need to spend our money on groceries” or if my older child wants something and doesn’t have enough on their own. I don’t want to crush their philanthropic motivations, but I also want him to know that money shouldn’t just be given away "willy-nilly". Am I thinking too much into this?
Answer: The value of money is an abstract concept for children, and it is very difficult for them to understand. The value of money is defined in each of our minds. Money may be even harder for children to grasp today because most
transactions are electronic and actual currency (bills and coins) are rarely seen passing hands.
Where to Start?
Children benefit from learning about the differences between saving, spending, and giving when they are younger. If you give your child an allowance, you can assist them in dividing their funds into the three categories.
Help your child determine how much of that money will be used to give to others (giving). How much of the money will they set aside to save (saving)? How much is their spending “pocket change” (spending)? Working with bills and coins may help your child understand the tangibility and value aspects of money.
Also, a savings account may assist your child in setting aside money to meet both their savings and sharing (donation) goals.
Allow Your Child to See You Giving Back
Your children are likely unaware of how generous of a human being you are. Consider sharing examples of your own generosity with them. Maybe it’s the direct deposit donation to the United Way every pay period or supporting a fundraiser online or volunteering your time to a worthy organization.
Further engage your children (and learn more about them as individuals) by asking: Who do you want to give your money to? Is there someplace you’d like to volunteer? What do you care about and who would you like to help? Why does that feel important to you?
Learning about finances is a lifelong process. As your child grows, guide them in determining what they really care about and causes or organizations they would like to support. Their acts of generosity may come in in the form of financial support, volunteering their time or special skills they have.
Part of the fabric of Lewiston-Auburn since 1887, Auburn Savings provides financial products and services for individuals, families, businesses and the shared community we call home. Visit us at auburnsavings.com
