CHICAGO, IL -- (Marketwired) -- 04/25/13 -- According to a BMO Harris Bank national survey conducted by Ipsos America, Inc., a leading market research company, nine out of ten (89 percent) U.S. parents think that they are an important resource for their children to learn basic money management. Unfortunately, less than four of ten (36 percent) parents talk to their kids about money management on a regular weekly basis.
As summer break quickly approaches don't let the learning end, BMO Harris Bank suggests that it is an opportune time for parents to start teaching their kids about the basics of investing and saving for the future.
"Learning doesn't stop when the school bell rings," said Julie Curran, Regional President, BMO Harris Bank. "It's never too early to introduce kids to the world of finance and that can start in the home. Even very young children can learn basic money skills, while older children can be taught about the stock market and the importance of setting financial goals."
BMO Harris Bank offers tips for parents on how to teach their children about saving and investing at any age:
The Early Years: The Value of Saving (suggested ages: 5 to 9)
As soon as children start to collect a few coins and understand the value of money, open a savings account for them:
•Explain to them why saving/investing money is important in life. •Introduce them to the concept of having a bank account and how money in a bank account earns interest. •Focus on a specific goal (such as buying a video game or a bike) this can make it easier for kids to set aside the money. Suggest children save at least part of the cash they receive for birthdays, holidays or jobs for something they really want. •By setting a goal and purchasing items themselves they will develop a better appreciation for the value of saving.
Taking Action: Learn the Marketplace (suggested ages: 10 to 12)
Once the basics are in place, it is time to start learning about investing:
•Educate children on the simple and key concepts of risk and balance -- use language they understand. •Explain the concept of share ownership and that shareholders own a piece of a company. •Show them how to read stock prices in the newspaper's financial pages or online. As homework, have them select products, clothing, favorite foods and track the stock prices of the companies that make these products. •Decide together how frequently they will check the stock prices (once a day, once a week) and then show them how to keep a log of the price changes to see how well their selections have performed.
Getting Real: Becoming an Investor (suggested ages: 13 to 19)
•Consider setting up a custodial account and having the child contribute part of his or her savings. •Explain that adults can invest for the benefit of children and young adults, the sooner they start to invest the more time the money has to grow.
"An important lesson is that we can make learning about finances fun for kids," said Curran. "With some instruction and hands-on experience, you may have the makings of the next world-renowned economist living under your roof!"
Get Financially Strong and Healthy with BMO Harris helpful steps.
About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,600 branches, and $542 billion in assets (as of Jan. 31, 2013).
BMO Harris Financial Advisors, Inc. and BMO Harris Bank N.A. are affiliated companies. Securities, investment advisory services and insurance products are offered through BMO Harris Financial Advisors, Inc. Member FINRA/SIPC. SEC-registered investment adviserSecurities and insurance products offered are: NOT A DEPOSIT - NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY - NOT GUARANTEED BY ANY BANK - MAY LOSE VALUE.
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