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Three Things We Can Learn from Elmo & Friends
Thursday, July 12, 2012
By: Veronica Brown


How to raise money savvy kids

Last winter, the Chicago Public Library Foundation received a generous grant of $223,000 from the PNC Foundation to implement the For Me, For You, For Later program aimed at educating young kids on spending, sharing and saving. The curriculum was designed by the Sesame Street Workshop for preschoolers, ages 3-5. Having a 3-year old of my own who loves Elmo, we decided to participate in one of the Family Workshops and learn how to start talking about basic financial concepts.

Here are some things we picked up on that you too can do at home with your youngsters:

Spending, Sharing and Saving - Introduce the ideas of spending, sharing and saving as good ways to make simple choices regarding money by creating jars for each concept. 

  • Spending jar - put money into this jar that your child wants to use to spend. Talk through her decision to spend her money on an item. Encourage careful thought and wise spending.
  • Sharing jar - here is where your child can collect money for something he wants to purchase for grandma's upcoming birthday or to give to an organization that helps others. 
  • Saving jar - this where you can encourage your child to save money for something she'll want in the future. Because waiting is a hard concept for kids, start out with a small goal and build up to longer-term goals from there. 

Stories are the best ways to convey important concepts with our kids. Here are the Chicago Public Library's recommended books for introducing financial concepts at home.

Tie in "choice" and "value", two additional concepts that compliment early financial literacy...

Choice - When we give our kids choices, we're helping them build confidence. Learning to choose helps children become thoughtful decision makers. While giving kids choices, it's also important to point out the difference between Need vs. Want. 

  • Choosing an outfit to wear: As he's deciding what to wear ask him to consider the weather, his favorite color, special occasion, or other reasons to choose certain clothes. 
  • Trips to the store: Talk to your child about why you are choosing one item over another. Is it healthier, less expensive, is it a staple food product or is it a treat that you can do without (need vs. want)?

Value - This is a tougher concept to address with little ones. Value is related to the cost of items and the price people are willing to pay for them. By talking to your child about how important something is she can start to understand that items (and actions) have value. 

  • Start by a talking to your child about her most favorite toy and why she likes that toy over all of her others. 
  • Pointing out jobs people do in the community (mail carrier, librarian, police officers, etc.) is a good way to introduce the idea of "earning" while explaining how a job serves the community and provides the person with money to pay for the things they need (and want). 
  • Everyday routines can also be used to explain value. If your child is able to help with simple chores around the house, you can let him know his contribution to the family is valued. 
  • This is a good opportunity to remind your kids that the most valuable things, like family and friends don't cost anything at all!

Thank you to the PNC Foundation for funding this great program for children and families! 

Visit the Chicago Public Library for more information on For Me, For You, For Later programs.