Texas CPAs Encourage Parents to Teach Children Smart Money Management Techniques

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Take Time Today, on Teach Children to Save Day, to Talk to Your Kids about Personal Finance

April is National Financial Literacy month, and the Texas Society of CPAs (TSCPA) is making an effort to encourage parents and families all over Texas to educate their young ones about personal finance. The American Bankers Association Education Foundation established today, April 11, 2014, as Teach Children to Save Day to spotlight the importance of teaching our nation’s youth about saving money. According to the recent T. Rowe Price Parents, Kids & Money Survey, 73 percent of parents agree that kids think of currency differently than they did growing up, because so many of today’s transactions are digital. Even though kids today are shopping online (61 percent), cash is not obsolete. Almost two-thirds of kids still use cash to make purchases. TSCPA encourages parents to talk to their kids about money this month, and teach them smart spending and saving techniques.

Texas CPAs have three tips for teaching children to save. Whether it is for a new bike or an ice cream cone, children are aware of money. The first tip is to start with a piggy bank; if you don’t have one, make one. Encourage your child to save a portion of their allowance each week. If they don’t have an allowance, but earn money on occasion for doing chores, encourage them to save a portion of the money they earn. After a few weeks go by, show them how they have managed to save and that they were able to get by with a little less than they thought.

The second tip is to talk to your children about savings accounts. Many banks have programs that provide incentives and activities designed to help children learn financial basics. With a savings account, your child will begin to understand the concept of compound interest.

Texas CPAs also recommend that you allow them to pull out a few dollars every once in a while to buy a special toy or treat. Young children will be happy to continue saving knowing that the money that goes into the account can also come out.

Finally, teach your children to set and save toward financial goals. Let your child set their own goal. This will give them an incentive to keep saving. Record the progress by making a colorful chart or poster that will illustrate their savings to date and how much more they need to achieve their final goal. Encourage them to set goals that may take a few weeks to attain. Children may lose interest in long-term goals that could take longer than that. Texas CPAs say that over time, your child can learn to become a disciplined saver.

Although Financial Literacy Month is only 30 days, TSCPA encourages families all over Texas to continue teaching kids about personal finance. Basic financial concepts such as budgeting, saving, and smart spending should be routinely discussed with children, especially children at the high school level. These resources and more can be found on TSCPA’s free consumer website, http://www.ValueYourMoney.org. Check out these family finance tips, one for each day in April.

TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.

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Avery Elander
Texas Society of CPAs
+1 (972) 687-8688
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