Everyone wants financial success for their children, that’s why we’re giving you these five tips for raising money savvy kids. After all, finances can be a pain point for many. So how can you raise children who are bound for financial success?
- Take your child to the credit union with you. It would be great if you opened a savings account for your child, but you don’t have to do that. Just take your child to the bank with you and let them watch you do your banking. Allowing your child to watch you manage your finances helps them understand the importance of making thoughtful financial decisions.
- Give your kids a way to earn money. Your kids don’t have to be very old to earn money. Small children can earn an allowance for doing chores like folding socks, making their bed, or brushing their teeth. Older kids, of course, can make money doing larger tasks like mowing the grass, babysitting, or washing cars. It’s good for children to learn the importance of earning money for what they want.
- Give advice, but let your kids make their own decisions. Sometimes it’s hard to let kids make mistakes, especially when the mistakes are so clear. However, sometimes good lessons come from making mistakes. If you think the way your child is choosing to spend his money is silly, you’re probably right. Remember though, letting him figure that out for himself will make a more lasting impression than just making him do what you think is right.
- Be tough. Once your child makes that silly spending decision, it might be hard to let them face the consequences. It might be hard not to give in when they want something else in a week. Standing your ground will help the lesson stick and hopefully help him make better choices in the future.
- Remember, actions speak louder than words. If you don’t have a family budget you stick to and are constantly indulging in frivolous spending, it will be hard to teach your child how to be financially savvy. Make sure that you’re “walking the walk” and not just “talking the talk”.
Want to learn more about the services Centra offers, including various types of Savings Accounts? Set up an appointment to talk with a Centra representative, email us or give us a call at 800-232-3642.