Teach Your Kids To Manage Money At Any Age
One of the greatest gifts you can give your child is good money management skills. When they reach adulthood, they will already value the idea of saving money and having a sense of financial security that will benefit them throughout life.
For Small Children
Their Own Place To Save – Give your child their very own place to keep their money. That could be a cute piggy bank or even a clear glass jar that allows them to see their savings add up. Periodically help them count their money and talk about how even small amounts can add up quickly.
Teach Them Value – If your child requests a $10 toy at the store, take a minute to talk about the cost of the toy. Even if you are paying for the toy, talk to them about how much money they have saved and how long it has taken for them to save it. Help them understand that buying something means giving up hard earned cash and not having money for later.
Open A Savings Account – A Passbooks Savings account at VCNB gives provides a safe place to keep all that money once the piggy bank is full. They’ll even earn a little interest on their savings! Get them into the habit of coming into the bank to make their deposits and have their passbook updated. Have a lot of coin? Some of our branches have coin machines that kids love to run their savings through!
A Little Older
Discuss Needs Versus Wants – As kids age, talk with them about the difference between a need and want. You need a winter coat. You want the name brand coat like your friends have. You need dinner. While you could make chicken tenders at home, you want to eat in a restaurant. Help them understand the difference and the cost difference.
Discourage Impulse Buys – Encourage your kids to think before they buy and discourage them from believing they need to buy the thing they want the minute they see it. Sometimes that shiny new thing in the store will be a distant memory tomorrow if they have to wait for the purchase.
Create Opportunities To Earn – Rather than just giving your kids an allowance, consider giving them opportunities to earn some money. They will likely better manage money they had to earn better than what is handed to them. Plus, they will have a chance to learn some skills and responsibilities!
Tweens and Teens
Revisit Old Lessons – It never hurts to review all of the above lessons as we age. After all, our desire to keep up with the Joneses, so to speak, is often a product of peer pressure in middle and high school.
Help Them Set Savings Goals – By the time they’re teenagers, most kids are thinking about major life goals that come with big price tags. A car, higher education and a place of their own top the wish list for many kids that age. While graduation seems far off when they’re 14, the time will pass in the blink of an eye. So, help them figure out what’s really important and set some tangible goals so they’ll be compelled to save as much as possible. Do they know what kind of car they want someday? Talk about the price and the other expenses that come with owning a vehicle including gas, maintenance and insurance.
Give Them Their Own Checking Account – Teach your teenagers real life money management skills with a Student Checking at VCNB. This account is much like your own checking, only it’s designed for the beginner. With their own checking, your teenager can learn how to track their balance, how to spend within limits and how to use an ATM. They can learn all of these things with your guidance so they’re old pros at managing a checking account by the time they leave your home. Click here for more details.
Teach Them To Budget – Anyone who earns and spends money needs a budget. This includes your kids. Whether they have a part time job or rely on an allowance at home, they need to learn how to manage money properly. A budget will show them where their money goes and aid in deciding their spending and saving priorities.
Lead By Example – The best way you can teach your kids good money management skills is to lead by example. Unfortunately, these skills can be hard for a lot of adults too. It’s worth your time to brush up on some of these skills while teaching your kids. Many adults struggle to budget, to decipher the difference between a need and want or to feel inspired to save money. Whether you learn first or learn alongside your kids, it’s never too late!
Here are some articles to help you:
Sticking To A Budget
31 Ways To Save Money
Save On Groceries
Spring Clean Your Finances
Spending Fast 101
Three Steps to Manage A Credit Card