Website design By BotEap.comI was surprised when I asked parents to tell me the life skills they would like their children to know, and there was an overwhelming request for a few topics:
- How to open a bank account
- How to budget and balance accounts
- How to write checks and pay bills
- And how to start saving for retirement
Website design By BotEap.com It seems that some of the things we take for granted, as a result, are missing from what we teach children.
Website design By BotEap.comIn the last article, we focused on the budget and the balance of accounts. We even discuss games and contests you could host for your kids. This article is the third in a four part series and will look at how to teach children to write checks and pay bills.
Website design By BotEap.compaying bills
Website design By BotEap.comI was a bit surprised when several parents recently reported that they had teenagers who were going to pay a bill by sending cash. I guess the obvious is not so obvious.
Website design By BotEap.comPaying bills is often done online, so it’s important to teach kids how to protect their identity online and store their login information where it can’t be stolen or accessed.
Website design By BotEap.comHowever, there are still quite a few companies that do not offer online payments, and the only way to pay your bills is by check in the mail.
Website design By BotEap.comAll kids should know why they NEVER send cash and how to write a check specifically to pay a bill. For example: put your account number and any other required details in the note.
Website design By BotEap.comThis brings us to the next topic: writing checks.
Website design By BotEap.comwrite checks
Website design By BotEap.comWhen I was 12 years old, I went to outdoor education. Interestingly, part of the experience was that we could only write checks for candy there, and our parents would put a certain amount in our accounts so that we would also have to budget and balance our record.
Website design By BotEap.comMost of the children were nervous! They weren’t sure how to fill out a check and it was a great learning experience. I remember being nervous because we had to fill in the italicized amount and I had trouble fitting it into the space.
Website design By BotEap.comThese days, many kids don’t even think about writing checks because there are so many other much more common means of transaction; however, I still find myself in need of checks for bills, paying contractors and even helping me out of a bind when I forgot my wallet.
Website design By BotEap.comAlso, in my previous articles, I have discussed the dangers of using and trusting a debit card.
Website design By BotEap.comSo how do you get your kids to learn to write checks, and why would they care?
Website design By BotEap.comget the kids involved
Website design By BotEap.comThe best and most interactive way to teach children to work with a checkbook is to find a reason for them to write checks.
Website design By BotEap.comThis is how you do it:
Website design By BotEap.comGive your kids an old checkbook, play checkbook or make your own (complete with a register). Then tell them that in order to get certain things around the house, they will need to write checks. For example, to use their electronic device, there is a rental fee that requires them to write you a check.
Website design By BotEap.comAdditionally, you can also give them a budget for the month to help them balance and budget their expenses. You need to balance a separate record so you can compare accuracy at the end of the month.
Website design By BotEap.comChildren love this game.
Website design By BotEap.comHere are some things you can get paid for:
- Use of electronic devices
- Watch TV (per hour)
- Snacks or special treats
- Bike rental fee
- Exit a task (limited use)
Website design By BotEap.com At the end of the month, if your children maintain a positive balance, they get a prize. If you have more than one child, the one who is most accurate in matching their record can also win a prize.
Website design By BotEap.comA variation is to cut privileges if they run out of money. Some think this is harsh, but it mimics the real world.
Website design By BotEap.comWriting checks is simple and most kids love to learn because they feel more like adults in the process.
Website design By BotEap.comIn the next article, we’ll discuss how to start saving for retirement. It could make a difference of over $200,000!
