With many states not requiring personal finance classes in high school, it’s important to help your young ones build a sturdy financial foundation early on. Don’t know where to start when it comes to teaching about money? We have put together a blueprint for you to get the conversation started.
Be a good example
Setting a good example for your kids through the way you handle money is just as important, if not more so, than what you teach them. Young kids learn to copy the actions of their parents, good or bad. That’s why it’s crucial to set the right example as early as possible. The American Bankers Association (ABA) recommends being a conscious spender and an active saver since children often inherit their parents’ money habits.
Saving money is one of the cornerstones of personal finance so teaching your kids how to get into the habit of saving is a good idea. One way to make building this habit easier is to find a visual way to track your child’s savings. You can use a clear jar or piggy bank so your child can see the progress they’re making. Making it a point to show enthusiasm they notice their savings grow is another surefire way to make the habit stick. Another way to make saving a focus for your child is to help them set and meet a savings goal. This goal could be as big as a shiny new toy or something small like a cone of ice cream. Setting and meeting these goals will teach them the value of saving as well as make them conscious that the things we want cost money. These color and cut jar wraps by the ABA – will help make saving more fun for your child.
Without earning money none of these other ideas would be complete. What better way to prepare your child for adulthood than to teach them that money has to be earned? One great way to do this would be to pay them to do certain chores to help them make the connection between work and making money. Use these tips and resources from the ABA Foundation to help youth understand money concepts that will set them on the path to a smart financial future. Visit https://www.aba.com/advocacy/community-programs/consumer-resources/kids-money.
A few money lessons sprinkled in here and there will help your child build a good understanding of money as they grow. At Core Bank, we have the tools and people to help you and your family succeed. If you’re looking to teach a child in your life about saving, our Core Goalsetter Savings account is a great place to start. Help them build good saving habits young by opening an account for them today!