CPA Matt Bryant of the New York State Society of CPAs offered some financial advice parents can share with their children Monday on News 8 at Sunrise.

“It’s a great idea to teach children that hard work can be rewarded,” said Bryant. “If a child can do things around the house such as cleaning the dishes or vacuum, paying them can teach them that hard work can be rewarded.”

Summer offers a great opportunity for kids to earn some money near home. “They could mow lawns, they can baby-sit, they may be able to do things around the neighborhood such as cleaning up yards, or some computer savvy children can do internet activities,” Bryant said. “Starting a small business can be a great idea. A lemonade stand can teach children to gauge the cost of supplies and the product and return the price to make a profit.”

Bryant said it’s a great idea to set up a bank account for your child. “It can be a good experience to learn about banking, you can go to the bank and make deposits, check your statements and make sure the deposits are there, and see the interest with the account growing.”

Even a trip to the grocery store can help a child learn about money and its value. “Grocery shopping is a great everyday experience to look at prices,” Bryant explained. “You can note at how a store brand is less expensive than the name brand, and larger quantities usually have a lower unit cost than small quantities.”

A budget for one day is a great idea, according to Bryant. “If you set aside an amount, let them pick where you want to go and what you want to do, you can determine what you can afford and do you need to eat out or can you eat home before you leave,” he said.

Bryant added, it’s not the worst idea to let your child experience the disappointment of money miss spent. “If the child has earned the money or it’s accumulated from gifts, letting them buy something that is not useful can be helpful, the child buys something that does not work or not useful, they may learn the value of the money they may have.”

Parents may also want to share some of their financial experiences with their children. “It’s good to share in financial terms the difference between a credit card and a debit card, and the difference between renting and owning and saving for retirement,” Bryant said. “If you can teach them how to do that at an early age and show them how to increase over time they may be more inclined to do so.”
For more information on this topic, visit the New York State Society of CPAs website, click here.