Your kids may wonder how banks are able to "give away" money - that is, pay interest. If they're not yet old enough to grasp the concept of loans and investments, you can simply tell them that's what banks do. That's what makes them "interesting." However, if they don't buy your game, you can enlist Teddy and Barbie in some role-playing.
Show your kids that Teddy's money doesn't just sit in a big pile in a safe. Barbie is also a bank customer, and she wants to open up a clothing store. The bank will study Barbie to see if her clothing store is a good idea and if she's a good, honest businessperson.
The bank will look at Barbie's history with the bank and note if she's always paid her bills, made regular mortgage payments on the Dream House, and loaned money to Ken in a sensible manner. If Barbie checks out, the bank will take some of the money from the depositors (open up the "bank," and take out a handful of cash) and lend it to Barbie to open her clothing store. You might show Skipper buying a new skirt from Barbie's store.
Then you can showyour children that Barbie will pay back to the bank the money that she borrowed to open her store. Explain that Barbie actually pays the bank a little more than she borrowed - her interest on her loan. Tell your kids that this additional money is where their interest comes from, as well as the money that the bank makes as profit for itself and to pay its employees.
You can tailor this lesson to the age and attention span of your children. You can also have it go on for some time, as some of the other toys decide to start their own companies and borrow money from the bank. Have Ken deposit money every week, since he is saving 10 percent of his income like a responsible toy. Show your kids that money has a life of its own and that when it's out there working for us, we can make even more money.
Many board games also illustrate the big picture of banks and financial decisions, Monopoly being the most popular. Check with your local toy store and see what games they have that are appropriate for your children's age groups. You can make your family financial summits more fun by closing the meeting with a game or two.
While playing, explain to your kids why you are making your decisions so that they understand the thought process that goes into spending, saving, and investing.
Most kids think that the only thing you can do with money is spend it. Here, you will be giving them a graphic, fun illustration of the fact that an alternative to spending money is saving money - and that the reward of saving money is that you get even more money as a result. You might have Snoopy saving up to buy a nice doghouse, or Kermit saving up for a new lily pad.
The goal is to convey to your children, as early in their lives as possible, the idea that money does not have to burn a hole in their pockets. There are alternatives to the mall when it comes to deciding just where they want to put their allowance or the money they earn at part-time jobs.
Make sure to have fun with your illustration of the banking system. It may well be that your children enjoy it so much that they want to play bank again and again, or by themselves. Let them! Once again, you are giving them an advantage in life that will always pay rich dividends.
Our website is not responsible for the information contained by this article. Webworldarticles.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.
This article was sent to us by:
Claire Bereham at
06022010
1. Is your kid mature enough to handle a checking account
All articles in this directory are property of their respective authors. Additionally, read our Privacy Policy
© 2010 WebWorldarticles.com - All Rights Reserved. Partners: Gunblade Saga