Centra Blog

Increasing your Financial IQ

Five tips for raising money savvy kids

Money savvy kid

Everyone wants financial success for their children. That’s why we’re giving you these five tips for raising money savvy kids! After all, money management can be a difficult topic for many. So how can you raise children who are bound for financial success?

  1. 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 Centra with you and let them watch you do your banking. Allowing your child to watch you manage your finances, whether in person or online, can help them understand the importance of making thoughtful financial decisions.
  2. Give your kids a way to earn money. You don’t have to wait until your kids are older to give them an allowance. Earning an allowance can start at a young age! Reward them for doing chores like folding clothes, making their bed, or taking out the trash. 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.
  3. 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! The way your child is choosing to spend their money may seem silly to you, and it might be. Remember that letting them figure it out for themselves will make a more lasting impression than just making them do what you think is right.
  4. 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 them make better spending choices in the future.
  5. 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’ll 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.”

Centra offers many beneficial services to support financial success. We even offer a fun and free way to learn money management skills all from your phone or computer with the help of Zogo! If you want to learn more about being money savvy, make an appointment to talk with a Team Member.