Raising Smart Savers: Healthy Financial Habits Start with You
Raising Smart Savers: Healthy Financial Habits Start with You
Financial literacy is important for everyone, teaching our children these skills while they’re young can set them up for long-term success. It is never too early to start.
One of the simplest ways to introduce budgeting to children is by giving them a small allowance and helping them split their money into different categories such as saving, spending and giving. This shows them at an early age that their money should be planned and if spent then it’s with intention. You can also encourage your child to explore options on how to earn money besides your basic household allowance - perhaps mowing lawns or dog walking. This type of entrepreneurship can teach children valuable lessons such as financial independence, initiative, and hard work.
As they begin to manage their money, it’s helpful to provide resources that support this learning. Here at the credit union, we have some excellent products specifically for our youth that can help support your child’s financial journey. For example, with our Sandy Savers program they’ll receive a stamp card and after every deposit over $10 – they’ll receive a stamp which allows them to choose one of our cool prizes from our treasure chest once their card is full. This experience turns their savings into something exciting and also rewarding.
Along with trying to make saving fun, it is important to provide your children with a practical way to help them manage their money. With our Student Checking Account, this product is a great starting point that provides a safe place to manage their money and how to track their spending. You can open a free checking account and provide them with their own debit card. This will help build their confidence in handling their finances.
An important aspect of teaching your child about budgeting is learning the difference between need and want. As an adult, we understand the distinction. Helping them understand the difference between the two can enable better spending habits.
Encouraging our children to save their money for a toy, activity, or something they’ve been wanting teaches them patience but also helps them understand the value that money holds. You can make this fun by creating a savings tracker that shows their progress. This visual can excite them and continuing motiving them to save.
The most powerful lesson comes from leading by example. We know that kids are always watching. If we show them responsible spending and good saving habits, they are more likely to adopt these behaviors. Parents can help their children build strong financial habits that can last a lifetime.
Post Author:
Lynnsie Gonzalez
Real Estate Loan Processing & Closing Manager
NMLS# 1968595
LGonzalez@gcefcu.org
The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.