April 21, 2021
The month of April is Financial Literacy Month and starting smart money habits at an early age is extremely important to us at First United Bank. In fact, in conjunction with Lemonade Day each Spring, we teach a financial literacy course to about 900 3rd graders in Lubbock! We’ve gathered our 7 best tips for teaching your kids about smart money habits:
Create ways for them to earn money.
If your kids aren’t of working age yet, helping out around the house, opening their own lemonade stand, or babysitting for friends and family can all be great ways for kids to learn that you have to work hard to earn money!
Teach them about wants vs. needs.
The money you earn should always take care of your NEEDS first, but it’s okay to buy something you WANT if you have extra money. It’s important to learn the difference between the two.
Teach them about setting a budget.
Something as simple as Back-to-School shopping can be an opportunity to teach your kids how to set a budget and stay within your spending limits.
Teach them about the concept of “Spend, Save, Share”.
This is a concept that comes straight from the Lemonade Day curriculum! When you work hard for your money it’s okay to spend some of that money. However, putting some away into your savings and sharing some of that money by giving back to your community, church, etc. are important parts of being a smart money manager.
Teach by example! All parents know that kids are like sponges.
Even if you don’t realize it, your kids are picking up on your money habits. When you demonstrate responsible money management, you’re setting a beneficial example for your kid’s future.
Let them save for something special.
If your child has something in mind that they really want, encourage them to start saving to meet their goal. Help them keep track of their progress and celebrate their success when they finally meet their goal!
Take a trip to the Bank.
Opening an account for your child can set them up for success from an early age. It’s important to teach your kids that banks keep your money SAFE. For now, they’ll have a secure spot to stash birthday money and chore money and when they get older—they’ll be comfortable when it’s time to start using other banking services.
Your guidance is your children’s best shot at financial responsibility. Even if you’ve made your own financial mistakes, talking openly with your kids about money and about the importance of making wise decisions with their money will put them on the path to success.