TEMPLE, Texas — Money and kids. When do you get them a credit card, a debit card, challenge them to pay for their won things? Or to open accounts in their names? Parents must make that choice at some point, and you don't want it to cost you a lot of fees. So, the first question is at what age should your child learn the value of a dollar?
Financial Planner Rolandus Johnson told 6 News, "I have been under the impression for a long time now, thanks to my parents and grandparents and doing it with our kids, the earlier the better! Now you know your child better than anybody else in the world does. So, you understand when they're able to start grasping those concepts."
And the only way to grasp those concepts are to put them into action. But "Rojo" says that should all be a part of the conversation!"
Rolandus says, "We like to give them money, you know here's 10 dollars here's 15 dollars, here you go, and you know we sit down and we have a conversation and then we sit down and say, 'hey what are you going to do with it?' You’ve got a saving category, you are saving up for the next video game, whatever. Or do you want to go and hang out with your friends this weekend and spend some of that money? And so having those conversations earlier and often, they start to understand, hey you know this money deal isn't just to be spent, there's different things that i can do with it."
So, we asked, which is better for the kids, a checking or a savings account?
‘Rojo’ answered, "We took the route of doing a checking and a savings and if you want to do that, that's great, you don't have to do that. But either or i think there's the simplicity of it, it's there for either or, a savings account of course is a little harder to spend from, and if the goal is just straight saving of course go that route, if you want to teach them you know money coming in and your spending this amount then a checking account is the way to go!"
And as for the debit card, rojo says, that's not something they keep until they start driving!
Rolandus Johnson told 6 News, "Right, one thing I do.... Don't let them have that debit card. We keep the debit card, that's pretty common sense there some parents say here is your debit card and then the account is negative and you've got a whole other problem."
Once your child understands that the money is fleeting, most of the time they will suddenly give greater weight to the needs versus the wants.
‘Rojo’ concluded by telling us, "What makes it sting is when they want to go out to eat knowing that mommy and daddy usually pay, is when you say, hey do you have the money for it? Yes! Well, you're going to pay for your food. So, it starts to sting a little bit. For us our 14 years old is starting to understand, he will ask, hey dad, how much money do i have in my account? Before he goes and buys anything. And if he's not comfortable with the level he is at he just won't buy it."
According to ‘Money Wallet’ financial experts suggest most kids are able to grasp money concepts by age 9, which makes it a good age to open an initial savings account. Because checking accounts require greater financial responsibility, they suggest waiting until your child turns 15 to open a checking account and get that debit card!