Kids and teens spend money as fast as it comes in. It’s hard to accept, but children learn the bad lessons better than the good ones we try hard to teach. Here are some quick tips on how to get the conversation started on the importance of saving and spending wisely. Learn how to teach kids about money sooner rather than later.
They learn by example.
If you are saving, be open about why you’re saving. Also, tell your kids what you’re saving for. If you, as a parent, overspend and don’t save, you can’t expect your children to act differently.
Have an open conversation.
Talk about the family finances. Discuss what you’re doing to save. For example, show them how you take a set amount each paycheck and put it into a separate account. Maybe you’re turning in bottles and cans, and instead of spending it immediately, you’re putting it into your savings account. Every little bit helps and they need to know that. Start a conversation at dinner. Count their piggy bank with them. This is an easy way to teach kids about money while they’re still young.
Set long-term and short-term goals.
Pick something every member of the family will enjoy. Now, start saving for it. Discuss how much closer you are to your goals every week. You could even make a chart to hang somewhere that everyone can see! Every week, update the total amount so everyone can see how much you’re saving as a team!
Offer to match their savings.
We do! Money Credit Union understands that laying the groundwork early makes a huge difference in how children view money. That’s why offer birthday deposit matching. The Credit Union will match a child’s deposit up to their age until they turn 13. So, if they deposit $10 in the month they turn 10, we’ll put in another $10.
With some understanding of savings, positive role models, and a little motivation, your children can develop important money management and savings habits at an early age. You will be able to teach kids about money with just a little extra effort. If you still need help, we’re here for you! We offer kids accounts and youth accounts. With a youth checking account, you can set spending limits and monitor their activity.