It’s never too early to start building smart financial habits. But many adults don’t know where to begin in an age-appropriate way to teach their children about money. Fortunately, there are a lot of resources out there to help guide these conversations.
There are simple steps that adults can take in their everyday lives to help teach children about money. For example, if there is something a kid really wants, it’s good practice to ask them to contribute to that thing financially. That gives them a stake in earning the money and teaches them the importance of saving for things they want to do. Parents can also open an account for their minor children to give them practice managing their money and seeing how to use a bank account. Atlantic Union Bank’s PRISM Checking accounts can be a great option, because they don’t have any maintenance fees or overdraft fees for account holders under the age of 25.
Additionally, it’s a good idea to talk to kids about the family’s finances. While many parents don’t want to introduce any concerns about finances too early, being transparent can help children understand the reality of money better and make them more prepared for when they have to manage their finances on their own.
For someone that is old enough to have an allowance, it’s a smart idea to encourage them to build out a budget. When they receive an allowance, encourage them to put some of the money aside to save, some to spend on things they want now and some to give to a charity that’s important to them. The FDIC has a variety of resources that talk about how to make a budget with a child.
It’s also possible to teach children about investing. You can make a game out of tracking the stock market, or even have your kids choose a specific stock or two to follow and see how they do.
Learning how to manage your finances is a lifelong journey. Helping youth build a strong foundation while young can set them up for a lifetime of strong money management skills. Use these resources to get more information about how to teach financial literacy early.
Sources:
https://www.investopedia.com/everyday-activities-that-can-teach-financial-literacy-to-kids-5091909
https://atlanticunionbank.banzai.org/wellness/resources/teaching-children-about-money
https://www.fdic.gov/consumer-resource-center/money-smart-young-people