Teaching your children about money
Saving doesn’t have to be complicated
It’s never too early to teach kids about saving and money. Learning about stewardship should start at a young age, and it’s a skill children can practice and grow into as they get older.
"Teaching children about money at a young age will help them understand money’s value and develop strong saving ethics,” said Marla Brenneman, Everence Federal Credit Union Branch Manager.
Here are some ways to teach and encourage kids to be smart with their money:
Distinguish between wants and needs
Children don’t need to know every detail of the budget, but it is important for them to understand that family funds are limited. Teach them that some things are necessary to live, and some things are just nice to have; knowing the difference is crucial to managing money at any age.
Let kids earn their own money
Many parents help kids learn about money management by giving them an allowance. An allowance can teach saving, spending wisely and budgeting and gives them a chance to make mistakes at a young age. It also gives kids a chance to learn that money is earned, not just something that is always accessible.
Break down where their money goes
Teach kids to budget the money they earn by dividing it into three sections: spend, save and share. The spend section gives kids the option to use their own money to buy what they want. Saving money is easy for kids, especially with Youth Savings Week. Everence Federal Credit Union will deposit and extra $5 when a child or youth makes a one-time deposit of $15 or more in a new or existing savings account during that week. Everence also has special “Save, Spend, Share” banks to help kids visualize where their money is going.
“Tithing” might not be in a kid’s vocabulary but sharing should be – especially sharing their money. Charitable giving can be started at a young age; help children decide a percentage of their money to give and model the practice for them as well.