Kids and money don’t always play well together. Help them avoid some financial pitfalls with simple advice at four of the highest stages of their lives. With this being Financial Literacy Month, here are some tips to help share money concepts with your kids, from kindergarten to college.
Kids (up to age 8)
When kids get their hands on money (allowance, chores, or birthdays), they want to spend it – not save it. Teaching them about smart savings is the best place to start on their lifelong financial journey. As much as kids love to play on smartphones, showing them how their money grows via a mobile or online banking app can be a fun, educational, visual way for them to understand the concept of savings.
Simply involve your kiddos after doing their chores or getting birthday money to open the mobile or online banking app and every week or so review what’s been added. Seeing how it grows over time is a valuable foundation to build upon. This is also a great time to talk about saving up for something fun, like a new toy, treat or experience.
Tweens (ages 9-12)
The tweens in your life are watching everything you do, especially when it comes to money. Teaching by example is the key. Show them how you balance your accounts or double-check that your account balances and bills to be paid are accurate in Online Banking. Also, share the difference between wants and needs. Start at the grocery store, showing them the difference between food for dinner (needs) and snacks (wants).
Next, help them set some short-term saving and spending goals. Since they are tweens, challenge them a little. Maybe encourage them to save up $100 in their account. Then, help them plan ahead to spend part of that money. Have they been eyeing a new bike or pair of shoes? This will teach them about saving vs. spending. Additionally, show your tween how your family saves and spends money every month on groceries and more.
Teens (ages 13-19)
Continually brush up on the concepts of saving and spending, wants and needs, as well as short- and long-term financial goals. This is a great time to start talking about college, vehicle expenses (if they plan to drive), and career choices.
As they enter high school, help them learn to use Online and Mobile Banking safely. Also, help them understand credit and credit scores. By opening their own checking account with a debit card, they’ll quickly learn how real-world finances work. To help establish their credit, they can open a low-limit, credit-building credit card. Our teen youth account could help.
Young Adults (ages 20-24)
Right around the age of 20, the kids in your life will start to realize they don’t have all the answers. This is your chance to teach them about proper budgeting. Show them your family budget and how it has changed as they grew up. Show them how to trim their current expenses to live within their means. If they’re in college, teach them how to spend less and make their monthly or quarterly finances last longer.
Wherever you and your kids are on your financial journey, we are here to help. That includes education resources, checking and savings options, access to Online and Mobile Banking, credit cards, and/or loans to help finance their first car or college education.