5 Tips to Teach Your Children About Smart Finances
How often do you talk to your kids about money? While many parents hesitate to discuss finances with their children, it is necessary to help them establish financial responsibility in the future. Here are five ways to teach your children about the importance of money management:
How to Teach Your Children About Finances
- Familiarize Them with Financial Terms
Even when children are young, it’s important to get them comfortable with common financial phrases, such as “budget” and “emergency fund.” Talk to your children about what a budget is, breaking down terms like “income” and “expenses” in ways they can understand. About 88% of young adults who talk about money with their parents are more likely to have a budget, according to the 10th annual Parents, Kids & Money Survey by T. Rowe Price.
- Open a Savings Account for Your Child(ren)
As they grow up, children can apply what they learn about household finances to their own. While a piggy bank is how many children save, it is easy to open an account at a bank or credit union to make sure funds are left untouched. At Clark County Credit Union, you only need $50 to open a savings account for your child(ren).
- Take Them to the Bank
In addition to making deposits into their own savings accounts, children can benefit from watching their parents during bank or credit union visits. Make banking fun and interactive by letting your children push the buttons on the ATM or explaining what tellers do.
- Give Them a Savings Goal
Children often learn best when they have a goal to motivate them, which can be especially beneficial when learning about money. If they have an allowance, ask them to contribute part of that allowance toward a savings goal, like a new toy, gadget or treat. They can see their money grow, and once they meet their goal, allow them to take the funds they saved and make a purchase themselves.
- Use Financial Education Resources
Take advantage of any financial education programs your credit union offers that can help your children understand more about responsible money management and budgeting. Clark County Credit Union offers free financial guidance with a variety of resources, including counseling services, debt management, webinars, and numerous online tools. Additionally, there are many different organizations that provide financial education, like nonprofit coalition Jump$tart.
Get started opening a savings account for your child(ren) by visiting one of our six locations or by calling 702-228-2228.