None of us are perfect when it comes to good money habits. But that doesn’t mean we can’t do our best to impart smart financial basics to our kids. Below are a just few practices you should avoid!
Don’t Wait to Discuss Finances
While you may not believe your 3 year old is ready to talk about money, he or she may be ready to retain more than you think! A study at Cambridge University indicates that kids’ money habits are usually set by age 7! * You can start teaching your children about money early by discussing concepts like spending, saving, and sharing.
Don’t Pass On Bad Spending Habits
When you are out shopping with your child, bring a list of the items you are going to purchase. This shows your child you only intend to pay for items that are planned on. It also teaches them how to prevent impulse purchases and how to keep organized. Using cash is a helpful tool as well. This provides the opportunity to explain that you can’t purchase more than what the cash can buy.
Don’t Dole Out Money Indiscriminately
Routinely giving your child money when they ask for it can be a problem. Try to stick to the same amount each week (ex. 50 cents or $1 for every year of age. An 8 year old might receive $4 or $8 each week). To teach them the value of money, it is best if they learn to earn additional money through some type of work or an extra chore they don’t normally do – like tutoring a sibling.
Give your kids a head start by teaching them to save at an early age. FORUM Credit Union offers Aware Accounts
for 0 to 19 year olds and a Student Checking Account
for ages 16 to 24. With our Aware Kids Account
, your child even has the opportunity to earn prizes for making deposits!
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Categories: Finances, Kids and Money, Students