MAKE ¢ENTS - Capital Bank

MAKE ¢ENTS
C A P I TA L B A N K • W I N T E R 2 014 • S AV I N G T I P S
six fun ways to teach kids
about money
(from www.money.usnews.com)
USE CASH.
Showing kids purchases with a credit card won’t
do much good. “Don’t [buy items] on credit
cards or with checks, because that’s
completely abstract,” says Eileen
Gallo, coauthor of The Financially Intelligent Parent. “Let your
kids hold the money and see the
money leaving their hands.” For
example, when your children are
young, let them deposit coins in
a parking meter.
GIVE THEM A MODERN PIGGY BANK.
LET THEM PLAY GAMES.
Games make the topic of money fun for kids.
“Games become something you can use
to open the discussion, so it’s not always
you preaching about money,” Beacham
says.
Grade-school
children
can play Planet Orange at OrangeKids.com, where they travel
through the solar system by completing certain jobs to earn money
for gas.
SHOW THEM HOW TO
MANAGE THEIR OWN
MONEY.
A traditional one-slit piggy bank
doesn’t teach kids much about money management, says Susan Beacham, chief executive and cofounder of Money Savvy Generation
in Lake Bluff, Ill. So Beacham developed the
Money Savvy Pig, a see-through piggy bank
with four slots: save, spend, donate, and invest. With the Money Savvy Pig, kids learn that
money isn’t just for buying things.
Let your child play an active
role in how money is used by offering them an allowance. But
consistency is important: Many
parents promise an allowance
to their kids but don’t deliver. If
parents forget to pay the allowance, children learn that money promises can be broken.
TAKE ADVANTAGE OF
THE WEB.
ENCOURAGE THEM
TO GIVE BACK.
The Internet is full of age-specific money games
for kids. Just last year, PNC Bank and Sesame
Street teamed up to create fun videos and
games that teach kids about money. Many children will find it easy and exciting to learn about
money from Elmo and his friends. T. Rowe Price
also offers The Great Piggy Bank Adventure,
which uses a talking piggy bank to guide children
through various financial lessons.
DID YOU
KNOW?
(from forbes.com)
Children as young as
three years old can
grasp financial concepts
like saving and spending.
Kids’ money habits are
formed by age seven!
In addition to having your child
donate money (to a charity
of their choice), make philanthropy more enjoyable by getting the whole family involved.
Volunteer together at the local
soup kitchen or participate in
a fundraiser at the neighborhood park.
Member FDIC
HOW DO BANKS WORK?
HOW DO PEOPLE USE BANKS?
(from themint.org)
Lots of people give their
money to banks.
When you give your money to a bank, it’s
called a deposit. Banks keep your money
safe. AND, more importantly, banks will pay
you for every dollar you keep in a savings
account! The money the bank pays you is
called interest. The bank will pay you interest every month you keep the money in your
savings account!
You’re probably thinking, “Wait a second
… banks pay ME money, and I don’t have to do
anything? Why in the world would a bank pay
me money to do nothing?”
Banks lend your money to
other people.
If people don’t have enough money
saved up to buy something, they often
borrow money from the
bank to buy big things,
like houses and cars. The
banks lend them the money to buy these things, but
the banks expect people to
pay the money back AND
pay the bank a little extra
money, besides.
Let’s say you borrowed
$10 from a bank. You get the
$10 right away. But when you
pay back the $10, the bank
will charge you $1 or $2 extra
for giving you the money when you needed it.
So you pay the bank $11 or $12. That’s how
banks earn money.
Without money from people like you, banks
wouldn’t have any money to lend. That’s why
banks will pay you interest.
If you leave your
money in savings…
Every month, the bank
pays you for keeping money
in your savings account. And
over time, that extra money really adds up!
Imagine if your parents
gave you $100 for your birthday every year for 10 years.
If you put it in your piggy
bank, you’d have $1,000.
But if you put it in a savings account, you
might have $1,100 or even more. That’s an
extra $100, and you didn’t have to lift a
finger! That’s why it pays to open up a savings account!
WORD SCRAMBLE
Unscramble the bank terms below! See how many you recognize
from the articles in this newsletter.
1. PETODSI
___ ___ ___ ___ ___ ___ ___
2. GIPGY KABN
___ ___ ___ ___ ___
3. VIGNASS
___ ___ ___ ___ ___ ___ ___
4. COCANUT
___ ___ ___ ___ ___ ___ ___
5. ENYOM
___ ___ ___ ___ ___
6. ESTERTIN
___ ___ ___ ___ ___ ___ ___ ___
7. NETOAD
___ ___ ___ ___ ___ ___
8. OWANACELL
___ ___ ___ ___ ___ ___ ___ ___ ___
___ ___ ___ ___
1. deposit 2. piggy bank 3. savings 4. account
5. money 6. interest 7. donate 8. allowance