4 Tips on Teaching Kids About Money
Kids and teens spending their money as fast as it comes in is a common issue. Difficult as it is to face, children learn the lessons we don’t want them to learn better than they learn the ones we try so hard to teach. Here are some quick tips on how to get the conversation started on the importance of saving and spending wisely.
1. They learn by example. If you are saving, and are open about why you’re saving, what you’re saving for and how important it is, children will learn to save. If you, as a parent, treat your own income as completely disposable, using everything that isn’t earmarked for bills immediately, you can’t expect your children to act differently.
2. Have an open conversation. Talk about the family finances. Discuss what you’re doing to save, like taking a set amount each paycheck and putting 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.
3. Set long-term and short-term goals. Pick something every member of the family will enjoy and 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!
4. 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.