It’s a common misconception to think that money management may be too much for younger children. The truth is the early years are a great time to teach the concept of money and the value of saving. Make it fun, take your child with you to open a savings account and to deposit money. Show them how their money has grown. Teach them that money is earned, how it is spent and the difference between needs and wants.
Use Real Life Scenarios
Sometimes it’s easier to learn by example. Take advantage of real-life scenarios to teach the value of a dollar. Take your children grocery shopping and show them how to compare prices or use coupons to save. Make it a game and have them guess the prices so they can start to learn some basic costs. Planning a trip? Show them the costs associated with it. Go through the price of transportation, lodging and activities. Once they see the costs, they may appreciate it that much more!
Give Them Opportunities
Giving kids the opportunity to earn some real money can help teach them the value of a dollar. For younger kids, give them an opportunity to earn money (maybe offering a few dollars to help a family member clean the house or weed the garden). For older kids encourage them to look for small job opportunities where they can earn money like shoveling snow or mowing lawns. Show them the costs of items they may want and teach them to take what they earned and save.
Help Prepare for the Future
If you have a teenager, help prepare them for the future. Discuss goals, debt and building credit. Help them build a budget after they get a first job or how to plan their weekly finances if they are heading to college.
Once you start, keep the conversion going. Reserve some time each month to continue your conversation and take advantage of real world money lessons.
If your child does not yet have a bank account, consider opening an Early Advantage Savings Account with Sikorsky Credit Union. This account is available to our younger members, infants up to age 25 and it pays a higher rate of return on the first $5,000.* Learn more
* APY = Annual Percentage Yield. APYs are effective 4/1/21 and subject to change. Balances from $5000.01 and over will earn 0.15%. Rates subject to change. To open an Early Advantage Account, the primary account holder must be under 25 years of age. Minors under the age of 13 require a parent or legal guardian as a joint owner on the account. Early Advantage Accounts require a minimum $5 opening deposit. Limit one Early Advantage Account per eligible member. Upon reaching 25 years of age, your Early Advantage Account will be closed and the funds transferred to your regular share savings account, earning rates applicable to such account. Fees could reduce earnings.
April is Financial Literacy Month! This is a good opportunity to set aside some time to talk to your child(ren) about finances. Teaching children the value of money now, can help set them up for a healthy financial future. Here are some tips: