Fun Ways to Teach Kids About Money
When is the appropriate time to discuss money matters with your child? Well, if they are at an age when they are requesting toys, then it’s time!
Teaching kids about money is an important part of their financial education. By starting early, children can develop good habits and skills that will serve them well throughout their lives. Learn how you can help your child develop good financial habits that will serve them well throughout their lives.
Start SavingBegin the process of saving for college early by considering opening a college savings account or researching available 529 college savings plan alternatives. Around birthdays and holidays, consider requesting that your relatives contribute to your child’s college fund rather than giving toys as gifts.
Teach Your Child About Wants vs. NeedsTeaching your child about the difference between wants and needs is an essential part of their financial education. Explain to your child that a “want” is something they would like to have, but can live without. A “need” is something they must have in order to survive, such as food, shelter, and clothing. Help your child learn the difference by using these coloring pages from the ABA!
Letting your Child Earn an AllowanceGiving kids the chance to earn an allowance can help teach them the value of saving and spending from an early age. Start with an amount that is appropriate for your child’s age and the tasks they are responsible for. Make it clear how often they will receive their allowance, and what they are expected to do to earn it, such as chores, making their beds, putting away dishes, or helping fold the laundry.
Visit the BankTaking your kids to the bank can help them learn about depositing money and making basic transactions. It’s a great way to teach them about how banks work and the importance of managing their money responsibly.
Looking for a savings account that grows with your child? Visit a Jefferson Bank Location to open a Youth Savings Account.
Teach Your Child the Different Ways Money Can Be Used and OrganizedShow your child the different ways money can be used. You can do this by creating a savings jar, spending jar, sharing jar, and investing jar!
Use Real-Life ExamplesAn easy way to teach your kids about money is to bring them with you to the grocery store with you. Let them make decisions about what to buy based on your budget. This will show them how to be mindful of costs and prioritize needs over wants.
Involve your children in planning finances that involve them, such as their allowance or saving for something they want. This will give them a sense of ownership over their money and teach them how to make smart financial choices. Learning about money can be fun and practical when you use real-life examples!
Age-Appropriate JobYour child having a job at a young age can help them learn about responsibility and the value of hard work. Help your child find an age appropriate job such as yard work, pet care, babysitting or washing cars.
Help Your Child Open Their Own Bank AccountIf your child has just landed their first job, it’s the perfect time to open up their own checking and savings account! Help them create a savings and spending plan that will guide them in making wise choices with their money.
Prepare for CollegeIt may seem like you have some time, but your child will be off to college before you know it. Start researching scholarships and other funding options. Setting a savings goal with your child can also be helpful. Together, you can work towards saving for expenses like housing, travel and other college-related costs.
Financial ResponsibilityIt's important to have a conversation with your teenager about credit and how to prevent identity theft. Make sure they comprehend the potential consequences of accumulating debt, and encourage them to pay off their monthly balance completely.
High School GraduationThe time has finally come. Your child graduating high school can be bittersweet, as it marks the end of one chapter in their life while also opening the door to new opportunities. Consider asking family and friends to contribute to a savings fund as a gift for your high school graduate.
It may require some dedication and patience to teach your child about the value of money, but the skills they acquire will benefit them for years to come. If you’re considering setting up a bank account for your child, apply online at Jefferson Bank today or visit a branch location.
The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.