One of the most important lessons that parents can teach their children is how to manage money responsibly. A person's money saving skills, much like most other skills, will be better retained if the training starts at an early age. Make sure to subscribe to our blog, so that you never miss a new post with exciting tips and tricks!
Where to start
The first thing that children need to understand is that the old cliché saying "Money doesn't grow on trees" is so true. Children need to understand that money does not come easy and is not just handed out. Make sure that your children understand, whenever you have a job and work for it, you will get paid. Not working hard, however, will produce nothing. it is very important to explain to your kids at a very young age the correlation that money has with hard work.
Just because you have it … doesn't mean you have to spend it
Most kids, and even some adults, think that all money is good for is spending it. There are a lot of things that you can do with your money and it's important to explain to children what you can use it for. “Once you’ve established that money comes from work, I recommend teaching your kids three basic principles when it comes to money — giving, saving and spending,” says Rachel Cruze, personal finance expert and the co-author of “Smart Money Smart Kids: Raising the Next Generation to Win with Money.” “Giving is one of the most important of the three categories because you’re teaching them to feel the impact of helping others at a young age. That’s invaluable,” Cruze continues. “As for saving and spending, encourage your child to set aside some of their money to savings and some to spending each time they get paid. Remind them that once their money is gone, it’s gone. And yes, your kids will make mistakes, but it’s better that they make those mistakes under the safety of your roof.”
Teaching when able
According to a USA today study, Nearly three in four (74%) parents with adult children say they help their grown kids with their finance. A large portion of this group can be attributed to not being involved in bills or money decisions at home growing up. Children must begin their financial training as early as they can. There are several options on Financial Literacy tools, but our favorite is Banzai. Banzai offers several fun and interactive training materials for the whole family. However the best way to teach, as with anything, is to lead by example. All of us should continue to enhance our financial knowledge each and every day. One of the best things about a local credit union is just that, we are local and here to help. Whatever it is that you're seeking we are here and eager to help you along your journey.
For more information please refer to Banzai for interactive teaching materials.
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