Make Sure Your Kids Are Getting A Financial Education
At Members 1st, we know that financial education is important, and educating our customers is a part of our mission. What about your kids, though? Financial education must start somewhere, and it should start with you. School curriculum isn't cutting it anymore, and there are steps that parents can take now to educate their children so that they can make sound financial decisions now and in the future. Let's look at some everyday opportunities that can help you get started.
- Talk to Your Children About Money
Kids need to know about the basics. Discuss where money comes from and how it's used. When you tap or slide your debit card, clarify that this action is taking money from your account just the same as if you were withdrawing cash. Talk with children about earning money and consider giving them an allowance for the proper completion of chores. If the chores aren't completed the right way, explain why they must be done properly to garner the allowance. Removing some of the mystery around transactions and building an understanding about how to earn money will benefit your kids in the long term.
- Create Teachable Moments
There are lots of everyday opportunities to teach your kids about money. Going grocery shopping is a great opportunity to talk about budgeting and value, so you're getting the most for your money. Have your child help compare prices on similar goods and show them how closely the budget was kept with your receipt. You could also try planning an event (a weekend outing or a birthday party) with a budget, and let your kids help. Hands-on experience will help them learn value and discretion.
- Emphasizing Needs vs. Wants
Kids ask adults for the things they need, and for the things they want. Sometimes, they ask a lot. It's important to differentiate between needs and wants for children and teens. When your child spends money, ask them if it was a need or a want. Ask them how spending their money made them feel and what alternatives they could have chosen instead. Helping them understand the difference now will go a long for helping them make sound financial decisions in the future.
- Open A Savings Account - It's Never Too Early To Start Saving
Opening a savings account for your child or teen is a great way to help them track money they earn or receive, and it helps reinforce budgeting. Encourage your child to save for a bigger goal or purchase, and when they want to spend on other things, remind them what they're saving for and how much longer they'll have to save to reach their goal if they spend impulsively.
- Donate to Charity
It's important that we show our children that money can help people, and not just buy things. Find a local charity to donate to and show your children how money, even a little, can help people in your community.
Teaching our children about money helps us all make better financial decisions. If you're having difficulty talking to your children and teens about money, Members 1st is here to help. We want our members and their families to have the necessary financial skills to succeed! Call or stop by one of our offices today or click around our website to find out how Members 1st can support you!
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