Kids and Money Management
June 26, 2014 - by Patrick Redo
Summer has arrived, and kids everywhere are dealing with a lot of free time. This may be a good opportunity to start teaching money-management skills. Teaching your children about money may seem like a daunting task. allU.S. Credit Union has put together some simple, age-specific recommendations on how you can teach your children to be financially responsible – before they get their first credit card!
Ages 4-5:
Kids are most susceptible to everything you tell them at this age; so make sure you teach them good habits now. Buy them a piggy bank, and give them some money to specifically put into it. If they receive money for gifts, make sure to show them to save some of that as well.
Ages 6-9:
This is a good age to start giving kids an allowance. A Responsibility Chart is a good way to teach the kids that allowance only comes if you earn it. There's never really been a consensus among parents on this issue; should kids make an allowance for helping out around the house, or are chores simply part of family life? If you're a believer in the former category, consider this Pinterest find from Uncommon Goods. This easy-to-create whiteboard calendar lays out household expectations and what each task is worth. This could be a great money-saving teaching tool for young children!
Set An Allowance Budget
Whether you reward your child for helping with chores, or just simply give them a regular spending allowance, it's a great idea to set up a budget. Help them realize what kind of "income" they'll be receiving. If they decide to spend all of it in one shot, let them know that they'll have to start all over in working toward a bigger purchase. Learning big-life skills starts early!
Saving Is Awesome
Chances are, there's something important to your family that required saving in order to buy. Maybe it's a past vacation, a swimming pool or spa, or something along these lines. Explain to your child where these things come from - especially if it's something they're enjoying over the summer vacation months!
Take Your Child To The Credit Union
Bring them in to allU.S. Credit Union and help open their own savings accounts, and instruct them to save a certain percentage of their allowance every week. Children in this age range are just starting to care about things like the latest toys and specific clothing brands, and now is a good time to help them learn the value of money. Here's a great practical way to slip a money management lesson into regular errands. ATMs can be a little confusing; explain to your child where that money comes from and why you're withdrawing that particular amount. Added bonus - give them a certain amount that they can "help you" spend on another errand.
Ages 10-12:
Pre-teens are looking for some independence, and getting their first job might be a perfect way to do so. They can mow the neighbor’s lawn, babysit their cousins or paint their grandparents fence. Have them come up with ideas that suit their interests, and propose these moneymaking endeavors to their possible employers. Kids in this age range are ready to learn about the onslaught of credit cards – and how dangerous it can be to spend over the amount of money you know you’ll make to pay off your bill.
Make a Wish List
There aren't a ton of present-giving holidays during the calendar year, so if your child has a short list of things they really want, have him/her make a list. Find out the cost, and motivate them to save their money to put toward that item. One idea we really like; as they make progress toward saving for what they want, offer to match the cost. Remember, hard work deserves a reward!
Ages 13-19:
Teenagers are old enough to have their own jobs, and can really start to take (guided) control of their financial future. Discuss with your teens the importance of staying on top of credit card debt, and recommend that they start with a checking account and debit card instead. If they DO get a credit card, make it a low-limit card so that you and they can work on budgeting until they get the hang of it.
Teach Practicality
When all is said and done, lots of young adults still find themselves in financial trouble because we live in an ultra-consumer society. With younger children, emphasize that things are not the most important part of life. Having the trendiest clothes, toys, etc. is a lot of fun, but in the long run, many of the things we come to value are imposed on us by what we see on television and in magazines. A certain amount of skepticism when it comes to consumer culture can go a long way in helping kids save money!
These are only a few pretty basic ideas for kids and money management. Is there a way you teach your kids about finances? Leave us a comment and share your ideas! If you feel like you need some additional help explaining any of these financial topics to your children, bring them by allU.S. Credit Union! We’re here to support you and your family, just like always!
That’s what makes us Positively Different!
Topics
Changing the game of vehicle total loss protection
3/2/2019
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Should I Buy or Lease?
3/26/2015
First Time Car-Buying Tips
2/25/2015
Is 0% Financing Too Good to Be True?
1/16/2015
What do you need to do to improve your finances in 2021?
1/1/2021
Protect Your Financial Health During and After the COVID Crisis
7/2/2020
What Can You Do With $20?
2/28/2020
BUILDING A SOLID FINANCIAL FOUNDATION
1/29/2020
What is your Financial Personality?
9/28/2019
Money Management Apps to help boost your finances
9/2/2019
How's Your Financial Vocabulary?
1/30/2019
BACK TO SCHOOL SEASON IS UPON US!
8/2/2017
How to Enjoy Your Summer Vacation Without Maxing Out Your Credit Cards
6/24/2017
CONFESSIONS OF A TAX GUY
3/29/2017
Make the Most of Your Financial Life
1/26/2017
Nine Strategies to de-clutter, organize accounts and manage your money
9/26/2016
Perks to Belonging to allU.S. Credit Union
4/27/2016
A New Card with Improved Security
3/29/2016
Tax Time: Prepare Smart and File Fast
2/24/2016
SET YOURSELF UP FOR FINANCIAL SUCCESS IN 2016
1/20/2016
Clean Up Your Finances for the New Year!
1/6/2016
Splurge Or Save? The Unlikely Budgeting Tip To Help You Stick With It
8/25/2015
Home Equity Loan vs. Home Equity Line of Credit - What’s the difference?
7/30/2015
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Teach Your Children Financial Independence
4/24/2015
Should I Buy or Lease?
3/26/2015
Should You Consolidate your Debt Into One Low Payment?
1/28/2015
Spend Smart This Holiday Season
12/16/2014
Spring Clean your Finances
4/22/2014
Make the Most of Your Tax Refund
2/26/2014
How Do You Give Thanks This Year?
11/20/2020
Filipino American History Month
10/25/2020
allU.S. HOLIDAY SURVIVAL GUIDE
12/7/2019
Happy Thanksgiving from allU.S. Credit Union
11/27/2019
Discover Halloween Savings
10/11/2019
8 Holiday Tips to Get You Through the Year
12/11/2018
Happy Thanksgiving from allU.S. Credit Union
11/20/2018
Season's Greetings!
12/18/2017
How To Survive Black Friday and Cyber Monday Like An Ace!
11/15/2017
allU.S. Wishes You a Safe and Happy Holiday
12/19/2016
7 Ways to Avoid Stress this Thanksgiving
11/17/2016
Happy Holidays from allU.S. Credit Union
12/17/2015
Let’s Have Thanksgiving Dinner on a Budget
11/9/2015
Fun With Pumpkins: 5 Homemade Fall Decorations Using Everyone's Favorite Gourd
10/19/2015
Spend Smart This Holiday Season
12/16/2014
Pull Out All The Stops This Thanksgiving without Breaking Your Budget
11/21/2014
SHOULD I CUT THE CORD?
8/29/2020
Three Ways To Maintain Your Summer Financial Goals
7/20/2019
Tips for a Frugal Fourth of July
6/28/2019
Tax Identity Theft: Protecting Your Credit and Finances
4/22/2019
How to get the Best Deals Online
3/30/2019
PREPARING FOR THE HOLIDAYS
10/27/2018
Charging your phone in public? Watch that port!
9/1/2018
CAN YOU SPOT ME SOME CASH?
7/25/2018
Loyalty Loan Program
8/31/2016
Home Equity Loan vs. Home Equity Line of Credit - What’s the difference?
7/30/2015
Why Should I Refinance My Vehicle at allU.S. Credit Union?
5/26/2015
Save Money with a Fuel-Efficient Car
4/24/2015
Should I Buy or Lease?
3/26/2015
First Time Car-Buying Tips
2/25/2015
Should You Consolidate your Debt Into One Low Payment?
1/28/2015
Go Green - It's a no-brainer investment!
7/30/2014
TIPS TO THROW A PERFECT TAILGATE
9/28/2018
Coronavirus Update
3/26/2020
allU.S. Credit Union is proud to announce the launch of our new mobile banking app!
2/27/2018
Jazz Advanced Banking
1/17/2018
EQUIFAX DATA BREACH
10/24/2017
allU.S. – Your Most Trusted and Valued Financial Resource
10/20/2016
Moving a Hop, Skip & A Jump Away
5/20/2016
Celebrate International Credit Union Day with allU.S. Credit Union.
9/28/2015
allU.S. Vacation Discounts Promise Nothing But FUN This Summer
6/19/2015
Annual Update From The CEO
5/21/2015
Stress Free Banking At Home In your Briefs!
3/26/2015
allU.S. Moves Forward With Plans for New Branch In North Salinas!
10/23/2014
DISCOVER THE FREEDOM OF THE OPEN ROAD!
9/28/2020
A Message To Our Credit Union Family
5/18/2020
Make Your Home Equity Work For You!
3/27/2018
2017 Is The Year to See Change in Your Life!
2/20/2017
allU.S. Credit Union Announces the Grand Opening of its New Location in Salinas
7/21/2016
Celebrate International Credit Union Day with allU.S. Credit Union.
9/28/2015
allU.S. Vacation Discounts Promise Nothing But FUN This Summer
6/19/2015
Stress Free Banking At Home In your Briefs!
3/26/2015
allU.S. Credit Union Is Turning 1
8/25/2014