Hilldale Elementary School third-grader Holden Davenport already has a grasp on what he’s saving money for.
“There are things I’d like to spend it on, like a house or a car,” he said.
Lofty goals, but Holden’s parents say he’s off to a good start with more than $600 in a savings account. David and Stephanie Davenport say they try to teach good savings habits to their three sons, who also include 13-year-old Mason and 4-year-old Evan.
Parents play an important part in passing on good financial habits to their children, financial experts agree.
“It is really important that we as parents instill good, practical financial habits to our kids,” said David Wood, president of First National Bank of Muskogee, 510 N. Main St. “And part of managing money is saving money. Our society is so focused on immediate gratification. Everything is so accessible now. If we can teach kids how to manage their personal affairs, that will give them to the opportunity to be much more able to achieve their goals.”
“My parents raised us to be financially responsible,” said Stephanie Davenport, who is Woods’ sister. She said she is passing habits on to her sons with varying degrees of success.
“Holden is the saver, while Mason likes to spend money he has,” she said. “But Mason is getting so much better.”
David Davenport said his sons receive money from their uncle and other family members for Christmas or for getting good grades.
He said the boys have managed to buy a bearded dragon lizard and a Shih Tzu puppy with money they saved.
Holden began saving money as soon as he started getting it, Davenport said. He said Holden began saving money in an old brief case when he was about 6 years old.
When it came time for the boy to open a savings account, the parents were amazed at how much money the boy saved in the brief case, Stephanie Davenport said.
“It just exploded. It was full of wadded up ones, fives and 20s,” she said.
She said it took a while for Holden to understand where the money went in the bank.
A savings account in a bank or credit union is one way parents can teach good money habits.
“Most banks offer a minor savings account with no fee for kids,” said Derek Hanson, branch manager of Arvest Bank 735 N. York St. “People can have balances as low as a dollar, at least at Arvest.”
Parents also can help kids develop good money habits by helping them know the difference between wants and needs, financial experts say.
“And don’t spend more money than you make, live on what you make,” Hanson said. “The first thing parents must do is set a good example themselves.”
Money tips for parents
• Set a good financial example.
• As soon as kids can count, introduce them to money, help them identify the different coins and denominations.
• Give kids their own piggy bank.
• Teach kids the difference between needs, wants and wishes.
• Set goals to save money for.
• Take children to a credit union or bank to open a savings account.
• Teach kids the value of money when you go shopping.
• Allow kids to make spending decisions and learn from mistakes.
• Teach kids how credit cards and debit cards work.
• Help your child track all money saved, invested or spent with a chart on a bulletin board or a refrigerator.
Sources: National PTA, Moms on the Move.com, Arvest Bank.
Reach Cathy Spaulding at 918-684-2928 or Click Here to Send Email
