I was surprised when I asked parents to tell me about life skills they wish their children knew, and there was a resounding request on 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
It seems that some of the things we take for granted, as a result, are lacking in what we teach children.
In the last article, we focused on budgeting and balancing accounts. We even review games and contests that you might organize for your children. This article is the third article in the four-part series and will discuss how to teach children to write checks and pay bills.
Paying bills
I was a bit surprised when several parents reported that they had teenagers who were going to pay a bill by sending cash. I guess the obvious is not so obvious.
Bill payment is often done online, so it is important to teach children how to protect their identity online and store their login information where it cannot be stolen or accessed.
However, 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.
All children should know why you NEVER send cash and how to write a check specifically to pay a bill. For example: put your account number and any other information required in the note.
This brings us to the next topic: the issuance of checks.
Write checks
When I was 12 years old, I went to outdoor education. Interestingly, part of the experience was that we could only write checks to buy treats there, and our parents would deposit a certain amount in our accounts so that we also had to budget and balance our record.
Most of the kids 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 quantity in italics and had trouble fitting it into the space.
These days, many kids don’t even think about writing checks because there are so many other, much more common means of transacting; however, I still need checks for bills, paying contractors, and even helping me in case I forgot my wallet.
Also, in my previous articles, I have expressed the dangers of using and trusting a debit card.
So how do you get your kids to learn to write checks and why would they care?
Involve the children
The best and most interactive way to teach children to work with a checkbook is to think of a reason for them to write checks.
This is how you do it:
Give your kids an old checkbook, a play checkbook, or make your own (with a record). Then tell them that in order to have certain things around the house, they will need to write checks. For example, to use your electronic device, there is a rental fee that requires you to write a check.
Additionally, you can also give them a budget for the month to help them balance and budget for their expenses. You need to balance a separate record so you can compare at the end of the month for accuracy.
Children love this game.
Here are some things you can charge for:
- Using electronic devices
- Watching television (for hours)
- Snacks or special treats
- Bike rental fee
- Exit a task (limited use)
At the end of the month, if your children maintain a positive balance, they receive a prize. If you have more than one child, the one who is most accurate in balancing their record can also win a prize.
A variant is to cut off privileges if they run out of money. Some think this is harsh, but it mimics the real world.
Writing checks is simple and most children love learning because they feel like more of an adult in the process.
In the next article, we will discuss how to start saving for retirement. It could make a difference of more than $ 200,000!
