- Set goals: Talking about saving for a summer vacation is a good place to start, but parents also need to explain the importance of setting long-term goals such as saving for a car, college, or even retirement.
- Leverage everyday "money situations": Interactions involving money, whether it's using coupons at the grocery store, balancing a checkbook or comparison shopping for a new television, are opportunities to teach kids valuable money lessons.
- Lead by example: The survey revealed that 95% of kids say they have learned the most about saving and spending money from their parents. When parents act as good financial role models, kids have a better chance of learning the right lessons.
One idea is to plug kids into online games or mobile phone apps that teach them about money, and specifically about savings and spending. T. Rowe Price offers an online program called MoneyConfidentKids.com that covers that same ground. T. Rowe Price also advises taking the following steps to close that "cash communication" gap between parents and kids: