It’s never too early to start learning how to manage money! Let us assist you in starting the young people in your life off on the right foot. In celebration of April being designated as National Credit Union Youth Month, we’ve created a list of tips for you to consider when teaching your children about finance.
Give them a little money: Giving your child physical paper and coin will help them understand money and how to handle it. Consider paying them once a week or every two weeks, just like an adult gets a paycheck, for doing chores around the house or helping out a neighbor. This will teach children that money is not free, and everyone has to work for it. It will also teach them that when you work for your money, you are less likely to spend it on things you don’t really want.
Teach them about interest: Interest is a complicated topic for people at any age. Make it a little easier to understand by adding a little to the allowance your child has saved each month, similar to a savings account. The more money they save, the more money they earn in interest.
Make a wish list: Making a wish list with your child will help them prioritize what they really want and how much it might cost. They may really want a doll that costs so much they can’t purchase anything else on their list. This will teach them to be responsible with their purchases and start them on a budgeting and money tracking path that will help them when it comes to creating grocery lists, setting budgets, and paying bills in the future.
Take them shopping: Once your child has money saved up, they may want to buy that doll or a video game. Let them. They’ve worked hard for their money and they can learn about how to spend money wisely.
Lead by example: When your child sees you practicing financial responsibility by budgeting, finding savings, and saving for purchases, they will follow suit. They will learn good money habits that they can take with them into adulthood.
If you are a teacher or would like information about free financial education materials for your child’s school, please email email@example.com.