7 Tips for Teaching Kids Healthy Financial Habits

You might think that your kids are too young to learn about money, or that you don’t have to worry about that until they’re older. But the earlier you start teaching your kids healthy financial habits, the more those lessons will sink in and guide them as they grow older. As a parent, you hold the most influence over your kids and have the greatest opportunity to shape them into financially responsible people.

At SharePoint Credit Union, we offer All Star Savings and Checking accounts for kids and teens to help you teach these crucial lessons from an early age. Kids aged 0-17 can open a savings account, and teens aged 13 and up are eligible to open a checking account. Check out these tips for teaching your kids about money and learn how All Star accounts can empower them to make wise financial decisions.

Teaching Younger Kids about Money

• Help them understand wants and needs: Even as adults, it’s easy to give in to the temptation of buying the things we want rather than saving for what we need. That’s why it’s so important to help kids make this distinction early on. You can also encourage them to think about small wants versus big wants. If they don’t spend so much money on candy, they’ll be able afford that big toy later on.
• Provide incentives: Encourage kids to save their money by rewarding them for doing so, such as matching every dollar they save. Your child can open an All Star Savings account with a minimum deposit of just $5, and we’ll match their initial deposit up to $25.
• Visualize their savings: Letting your child watch their savings grow can build patience and excitement, especially if they are placing their money in a savings account they can’t see. We’ll provide a free piggy bank when they open their account, and you can fill it with beads or marbles to represent the dollars they are saving up.
• Use their allowance to teach them: An allowance can be a useful tool for teaching kids the value of earning and budgeting their money. Tying their allowance to a set of chores teaches them that money isn’t free, for example. You can also use the three jars method—every time your child receives their allowance, they must divide it between spending, saving, and giving jars.

Teaching Teens about Money

• Help them create a budget: When your child reaches their teenage years, you’ll likely want to help them move beyond their three jars into a more complex budget. This can be especially useful if they are working their first job or paying to fill up the car with gas. Create a simple spreadsheet to display their income and expenses side by side and present a more accurate picture of their finances.
• Explain debit cards: Teens aged 13 and up can open an All Star Checking account and receive a free debit card with your permission. Carrying a debit card is safer and more convenient than carrying cash, and it allows you to monitor their spending.
• Explain debt: Debt is an important topic to tackle before your child moves out, especially if they plan on applying for a credit card or taking out student loans to pay for college. While borrowing money may help them now, borrowing too much can cause crippling debt. Make sure they understand that their loans can accrue interest and that paying off their debts as soon as possible is to their advantage.

Teach Healthy Financial Habits with All Star Accounts

SharePoint Credit Union is here to help shape your kids into financially responsible people. Our All Star Checking and Savings accounts empower children to build healthy habits early in life, so they’ll be ready for the responsibilities of adulthood. Visit your local SharePoint Credit Union branch or contact us to open an account today!
 

Share: Share on Facebook: 7 Tips for Teaching Kids Healthy Financial Habits Share on Twitter: 7 Tips for Teaching Kids Healthy Financial Habits