So, you might be wondering: when’s the right time to start teaching kids about money? Well, here’s the scoop: there’s no magic number. Some folks never quite get the hang of it. But here’s the thing—we believe the sooner, the better. The earlier kiddos start wrapping their heads around money stuff—saving, budgeting, all that jazz—the smoother their journey into the financial world will be down the road.
Now, you’re probably thinking, “But what’s the starting line?” Simple, really. All they need is to get a grip on the idea that money doesn’t vanish into thin air and some basic math skills. Basically understanding that just because they can’t see their money doesn’t mean it’s gone, and being able to do some basic addition and subtraction.
Once you’ve got those basics down, it’s all about empowering your little ones with financial smarts. Ready to dive in? Let’s chat about how you can set them up for financial success!
Lay the Foundation with Savings Accounts:
Just like teaching your child anything else, it’s important to start with the basics. One of the many virtues of credit unions is that most all require a simple savings – typically known as a “share account” – to establish membership. Share accounts are so named because they represent the member-owner’s stake in the cooperative just as traditional investors own shares in private firms. Now of course, your child probably doesn’t need that much info and likely wouldn’t understand it, but the important detail is they have a savings account that entitles them to membership and future services. Hopefully, they will get in the habit of saving early when through regular deposits to their share account.
Turn Saving into a Game:
Hey, have you ever thought about starting the savings journey with your kid using the good old piggy bank? It’s like a classic move, right? They can stash away their dough at home, feeling all grown-up and responsible. Then, when the piggy’s getting plump or maybe after a few months have zoomed by, make a fun outing of heading to the bank to pop that stash into their own account.
Here’s the kicker: depending on how fast they’re filling up that piggy—whether its coins clinking in or crisp bills stacking up—you can turn saving into a bit of a game. See how fast they can hit certain goals or milestones. It’s like a little challenge that makes saving exciting.
Now, as they grow, you can sprinkle in more money wisdom. They’ve got their eye on something—a shiny new toy, a cool video game, or maybe some gadget—but you’re not too keen on buying it for them. Boom! Prime teachable moment. Cue the spending lesson: you can’t have your cake and eat it too. Show them their account balance, explain that if they want to splurge, they have to dip into their savings. It’s like a gentle nudge that, hey, every choice has a trade-off.
And hey, the real magic happens when they’ve got a goal in sight. Remember that cool thing they’ve been eyeing? Set it as their savings mission. This teaches them the value of patience and strategic saving. Plus, it keeps those impulsive buys in check.
Bottom line? Learning about money is way more fun when it feels like a game. So, set those goals, make saving a blast, and watch your mini-money mastermind grow!
Introduce Basic Financial Concepts:
Alright, so we’ve talked about saving and spending, but now it’s time to dive into the nitty-gritty of managing that moolah. Your kid’s going to hit a point where they’ll need more than just a piggy bank—it’s all about leveling up to a checking account. And hey, if they’re really on their game, they might even start eyeing up a money market or CD down the road.
Budgeting can wait till they’re a bit older. Right now, let’s focus on the lowdown of interest rates. Keep it simple: interest is like a little thank-you cash from the bank for keeping your money safe with them. If they’re itching for a deeper dive into how those rates are cooked up, and your game to chat about it, why not? Stoking their curiosity about finances, especially when it affects them directly, is key.
So, encourage those questions, foster that interest, and together, you and your kiddo can conquer the financial world, one curiosity at a time!
Address Emotions Tied to Money:
Alright, let’s get real. Money isn’t just about numbers and bills—it’s got a sneaky way of messing with our feelings, too. I mean, who hasn’t felt the sting of stress when it comes to finances? It’s like a universal truth or something.
Folks often get hit with a whole rollercoaster of emotions when they’re dealing with money stuff—shame, frustration, you name it. Now, you don’t have to dump all that heavy stuff on your kids, but it’s good to start planting the seed early that, hey, it’s totally normal to feel some kind of way about money.
Just like when they’re having a meltdown over a broken toy, it’s better for them to chat it out with you rather than letting it all brew inside. And hey, bonus tip: as they grow up, they can always lean on your credit union for some extra financial wisdom, no matter what their situation looks like. So, keep those lines of communication open, and together, you and your kiddo can tackle anything money throws your way!
