Teaching kids about money may not come naturally to most. But like any skill in life, giving your kids hands on experience when they are young will pay dividends later (pun intended). Below you’ll find four simple ways to teach good money habits.
There are really just two simple concepts to teach when it comes to budgeting – income and expenses. Find out what your kids are earning each month through allowance, a lemonade stand, or chores around the house. Then, help them determine where their money is going. Discuss the principles of saving, spending, and giving. Help them determine what percentage of their money should go to each category.
Teaching your children about debt from a young age will enable them to make smarter decisions down the road. A simple teaching method might include lending your child a certain amount of money for something they really want, and then requiring they pay back that money in a timely manner. You can also discuss when money should be borrowed (ex. for education instead of shopping).
Sit down with your child and help them create a list of both short-term goals (ex. candy) and long-term goals (ex. a bike). Taking time to save for a big goal can help your child learn the benefits of delayed gratification, and may help them one day save for retirement.
Opening a kids savings account is great way to keep money safe and also teach children that their money can earn dividends. FORUM offers Aware Kids
and Teens Accounts
, as well as a Sprout Account
, a place to save for your child’s future. In celebration of National Credit Union Youth Month in April, your child will receive a special gift* and be entered to win 1 of 7 $75 deposits** if they open an Aware or Sprout Account with at least $25! Click here
*While supplies last. One account per child.
**No purchase necessary. See official rules for details. Account must be opened with an initial deposit of $25 or more and be in good standing to be eligible for drawing.