BMO SmartSteps® for Parents

Start with the basics

Where does money come from? What is it used for? Even young children can grasp basic money concepts like earning versus spending and giving to charity. And these early lessons can influence how a person manages money throughout life.

Did you know?
You can get tips and advice from parenting and financial experts on the best way to introduce your children to the world of dollars and cents with the BMO SmartSteps® for Parents website.

Tailor money lessons to the child

When teaching your children about money, take their age, level of comprehension and learning style into account to make sure they understand the concepts. Start with small steps and simple goals. And don’t forget, some money lesson “seeds” take awhile to germinate.

Did you know?
BMO SmartSteps for Parents can help you figure out what money lessons to teach your children, and when, using our learning Ages & Stages guidelines for kids 5-6, 7-8, 9-12 and 13-15.

Make money fun

Whether it’s by playing cashier or junior coin collecting, making a game out of a money-themed lesson not only makes it more fun to learn but will help kids understand the concepts and remember them as well. You can also reinforce each lesson when they want to play again.

Did you know?
BMO SmartSteps for Parents offers a range of fun, educational money-themed online games and activities – such as Price-tag Pair Up – that can help your kids learn about money while they "play."

Share the value of saving

As your kids watch you save for goals like a vacation or a new car, they will learn an important lesson about living within your means and delaying gratification. When they put that lesson into practice to save for something they want, they’ll experience the pride that comes from working hard to save for a goal.

Did you know?
A simple piggy bank is a great way to introduce the concept of saving. For a family project that’s fun for all ages, BMO offers downloadable step-by-step instructions on how to make your own custom bank.
 

Turn earning into learning

Whether it’s an allowance, paper-route earnings or birthday-gift cash, giving children hands-on experience with their own money can teach them to appreciate it and manage it responsibly. It’s also a great way to teach them to “pay themselves first” by putting an automatic amount each allowance, birthday or “pay day” into a separate envelope or bank account.

Did you know?
Young children are natural-born savers. They love to collect, count and sort. Encourage teens and tweens to save by showing them that making a school-day lunch instead of buying a $4.00 one, turns into $1,040 a year in savings.

A family that banks together…

Nothing cements a good habit like the experience of doing it yourself, so take your child to the bank with you to open an account for them and explain the concept of deposit and withdrawal. Use bank statements or online statements to help show them how easy and important it is to keep track of their transactions.

Lead by example

Where will your children learn their most powerful lessons about money? From you. So arm yourself with knowledge about budgeting, saving and investing while your kids are young and put those lessons into practice. Your kids will learn an enormous amount by watching you compare prices, save for a purchase and work out your weekly expenses.

Did you know?
An easy way to get your own finances on track is by preparing a budget. Start with our BMO MoneyLogicTM online family budget tool.
 

Teach wants versus needs

You can’t always get what you want – that goes for parents and children. Helping kids learn the difference between “must have” essential items and “nice to have” luxuries is a key lesson that will help them make smart money choices throughout their lives.

Did you know?
BMO offers a range of resources that can help you teach your kids to distinguish between what they need and what they would like.