Financial Lessons to Teach Your Children
As our children grow older, they will become more aware of the world around them and their money. It's important to instill good financial habits in your children, so why not start early? Here are few simple things you can do to set them up for financial success as they mature.
Demonstrate the worth of money
Kids are very visual learners at a young age, so give them something they can see their money in! Clear jars or piggy banks are perfect for this, because they can see their number of coins or bills filling their bank.
If they are with you on your latest run to the store, take some time to explain what items cost, so next time they can start to purchase items with their own money.
Teach the value of earning money
If you child doesn't have any access to money, they'll never learn how to manage it. And while it may be tempting to just give them a weekly or monthly allowance, you can teach your children the lesson of working hard for money.
Try creating a chore chart that has different monetary values for the work that is being done. Show them that doing smaller tasks like making their bed may be worth less than doing something like clearing the dishwasher or mowing the lawn. They'll learn that work is rewarded, and as a bonus, that's one less chore you'll have to do around the house!
Highlight the Power of saving
Of course, all money earned shouldn't be spent right away. There are multiple ways to instill good saving habits in your children.
Remember that piggy bank? Tell your children for every dollar they save, you'll add interest in the form of nickels or dimes. This will incentivize them to save, while also creating a saving habit to take with them once they get old enough to manage their own savings accounts, certificates of deposit or other savings vehicles.
Have a conversation about avoiding impulse purchases. If you child sees something at the store that they want to buy that instant, remind them o the bigger items that they may be saving up for, and buying something impulsively will only delay acquiring what they've wanted for weeks or months.
Consumers Credit Union has financial options for children
When your children are old enough for their own bank accounts, Consumers Credit Union has multiple options to get them started.
A Student Choice Checking account can be opened once your child turns 13 and offers a debit card with limits and overdraft protection, mobile banking, and ATM reimbursements. We also offer Student Visa credit cards to children 13 and older to give a safe alternative to cash while allowing your child to practice their financial acumen and gain credit history.
Contact Consumers Credit Union today to give your children a financial headstart.