It’s never too early to teach your kids good money habits. We’ve got a few ideas to help you get started!
Give an Allowance.
One of the best ways to teach money management is by giving your kids an allowance. How often or how much they get is less important then giving them the chance to control it. Use the allowance to help them learn that if they put in the work, they’ll earn money. Once they have money to work with it’s easier to show them how to best put it to use.
Make a savings goal chart and use stickers or drawings to visually demonstrate the amount of money they save each week. If your child wants to save up for a specific item like a new video game, a bike, or maybe even money to spend on an upcoming family trip, consider adding a picture representing what he or she wants to purchase with the saved funds as a motivation. Being able to visually see your goal and see your progress will encourage them to save to reach their goals.
Get a Savings Account.
Having their own independent savings account may encourage kids to save more money. Head to the credit union and open a CUbby youth savings account. A trip to the credit union to make a deposit into their account is a fun way to reinforce that their money is growing in their account.
Sometimes even as adults, we need to be reminded we must wait to buy the things that we want. Set an example and practice holding off on buying something by making a savings plan that you share with the family. Explain to your kids why waiting a little longer for the things you want may help you save and stay within your financial means.
In addition to saving, you may want to teach your children the importance of giving. Suggest giving a certain amount of their allowance to a local, not for profit of their choice, or to use for friends or family member gifts. Encouraging them to save so they can experience the joy of gifting someone they love a gift for Christmas or birthdays, is a feeling that is in important to experience.
Learning how to manage money is an important life-skill. Using these tips could help your kids learn good money habits and set them up to be successful adults.
Until next time,