Raising Money-Savvy Kids

As a parent, you can do several things right now to help your kids get on the right financial path. Here are some tips from the Credit Union National Association:

Younger than age 5

• Use coin savers to help children learn how to identify coins and count money.
• Introduce the concept of money by giving children small change to spend occasionally when you go to the store. Limit options to save time and reduce conflict.

Ages 5 to 10

• Give a weekly allowance to offer hands-on money management experience. Because children know they’ll regularly get a set amount of money, this makes it easier to learn how to save.
• Let children save for, and buy, something they really want. Rewards reinforce young children’s savings habits, so tie saving to spending.
• Use three containers labeled “Spend,” “Save,” and “Share.” Suggest that children contribute a portion of their allowance and cash gifts to each to teach how to spend wisely, save regularly, and give to others.
• When the “save” container builds up, take children to the credit union to open a savings account.
• Provide children with opportunities to earn extra money by doing jobs not included in their regular responsibilities.

Ages 11 to 14

• Include children on shopping trips to teach them what things cost and smart shopping techniques. Let them help compare product qualities, prices, return policies, and warranties.
• Encourage odd jobs: babysitting, yard work, or pet care.
• Encourage children to use their own money to buy beyond-the-basics clothing and accessories.

Ages 15 to 18 and older

• Discuss saving plans for long-term goals, such as education and cars.
• Consider giving teens a seasonal clothing allowance beyond their regular allowance. After setting guidelines and limits, let them make their own choices.
• Consider helping financially responsible teens open a share draft/checking account.
• Include teens when planning a large purchase, such as a car.
• When your teenager begins driving, review car insurance, maintenance, and repair costs.
• Consider encouraging financially responsible older teens to use a debit card with their share draft/checking accounts.

Join us this year as we celebrate National Credit Union Youth Week in April. What a great time to talk with your family about spending and saving!