When is it time to start teaching kids about money? As soon as possible. There are plenty of ways to educate your children about spending and how to save before they are adults with their own financial responsibilities. It’s also never too late to start teach to your child or teenager about money. Empower your kids now before they are taking out their own student loans or maxing out a credit card.
Teaching Young Kids About Money
A conversation about credit may fall on deaf ears when a child is young, but you can start teaching your kids the principles of money management with other real-life examples. If you have a young child, you can teach him costs and values of various objects by playing a game of Marshmallow Budgeting!
Marshmallow budgeting is a fun game parents can use to teach their kids about how to budget. Give your child a handful of marshmallows as their “paycheck”, and assign various things like a house, car, video games, and trip to Disneyland with a marshmallow price. Your child can spend the marshmallows as he pleases, or he can “save” and build up his marshmallow stockpile to be able to afford the house and the trip to Disneyland! This game is definitely the tastiest way to learn how to budget.
Give your child a fun piggy bank to build the concept of saving for a rainy day. Empowering your child to save his own money will help him develop a sense of ownership in his savings and will build his skills in refraining from impulse buys in order to save up for that dream toy!
Teaching Kids About Making Money
Your child may not grasp the concept that you go to a job for 40 hours a week in order to make money. It is important to take the time to teach your kids about how you make money. You can introduce the concept to your child by allowing her to earn some petty cash for different chores around the house. This concept will help teach your child about just how much work is required for a fun night out at the arcade.
Teaching Kids About Saving Money
You can give your child a weekly allowance to spend as she pleases, and this will help her learn how to prioritize spending. If you give your child an allowance, your child can learn about money management by making her own spending mistakes. She can learn how to prioritize what she spends her money on. Let her buy that toy impulsively and realize a month down the road that she could have saved her money on something that would have entertained her for longer or been more useful!
Open A Youth Account at Great Basin FCU
You can teach your kids about the benefits of saving money and becoming a credit union member by opening an account with Great Basin FCU. We offer Youth Accounts to help your children learn how to save. For children under the age of 12 we have our Jr. Savers Account, which has no minimum requirement or service fees.
Once your child turns 13, that Jr. Savers Account will become a Young Investor Account. The Young Investor Account can include a savings and checking account so your teen can start making some spending decisions of his own. Our Young Investor Account also has options for a personal loan or a share secured loan with you as the parents to begin discussions of lending!
Start teaching your kids about money and getting them excited about taking on a new responsibility with a youth account at Great Basin Federal Credit Union today!Share: