How To Teach Your Kids About Responsible Financing
posted on Thursday, December 22, 2022 in Financial Tips
Parents eventually have to teach their children the importance of saving money to help them prepare for their future and learn how finances can affect their daily lives. If you want to make an impact on their sense of responsible financing, here are some ways to do it:
Teach Them About Money Early On
You need to discuss money with your child when they’re young. As early as three or four years old, you can introduce them to the basic concepts of money and how it’s used. Later on, start giving them a few coins for them to spend.
By the ages of seven or eight, you can teach them about balancing their wants and needs and shopping wisely. This allows them to learn about money management and good saving habits.
Create Opportunities for Them To Earn Income
Introduce ways for them to earn income. One good way of doing this is to pay them a small amount whenever they do chores around the house, like cleaning their room or mowing the lawn. After they have accomplished their assigned tasks, you can reward your child with a dollar to encourage them.
You can also allow them to pursue other ways of earning money, like starting a yard sale to sell off any unwanted items. Or, you can let them set up a lemonade stand outside your home. This gives them an entrepreneurial mindset that can help them later in life.
Open a New Savings Account for Them
It is helpful to visit a local credit or financial institution with your child and open a savings account. They will know where to deposit the money that they earn. This can also teach them how critical it is to plan their expenses and set goals for themselves, giving them a sense of financial independence.
Teaching your child about money helps them become more financially independent in life. If you’re considering opening a new savings account, talk to one of our C1st representatives at Community 1st Credit Union. We can help you and your family reach your financial goals.