The start of a new school year is right around the corner, which means your kids are heading into a season of learning about all sorts of topics that will prepare them for a bright future ahead. One topic not typically highlighted as part of our children’s education is basic personal finance – and to support you in preparing your child to be financially independent down the road, we’ve gathered some simple financial education ideas that you can teach your children as they begin a new school year.
Saving and Spending Habits
Saving money is a vital lesson you can teach your children, even at a young age. At Partners, we offer youth accounts that can help you teach the concepts of smart money management and setting financial goals. By starting a weekly savings plan, they can track their progress and keep tabs on how much money they have saved up towards the purchase of something meaningful to them, like a video game or a fun outing. Click here for more information on how they can sign up for a savings account and begin saving right away.
How to Earn Money
Although smart saving habits are a great tool to put money aside for their wants and needs, it is also important that they learn the value of money early. One way you can accomplish this is to establish a weekly allowance when chores are completed around the house. This is not only a great way for them to understand the concept of earning and the value of money, but it also teaches them responsibility.
How to Use an ATM or Debit card
You can educate your kids on the basics of finance by teaching them how to use an ATM or debit card. Today, our society is almost cashless in our day-to-day spending, so knowing how to access funds from their account and the concept of balancing debits and credits is essential. From learning how to withdraw and deposit into an ATM, to using a debit card for their own purchases and knowing how to request cash back; the more they understand how it works, the better prepared they will be when they are out on their own.
Incentives For Reaching a Savings Goal
You can encourage your child to save money by offering them incentives for meeting a financial goal. For example, let’s say your child has a goal of saving $100 for a game they want to buy. You can offer to contribute an additional $20 if they reach that savings target, thus, encouraging them to not only continue to develop a healthy habit of saving but also boosting their chances of creating a habit to save for things they want. If they are confident they will reach those goals, they may be less likely to use credit with its possible pitfalls. The Partners Savings Planner tool within Online Banking is a great place to start and will help them automate funds to set aside for their savings goals. Click here to start saving.
As a parent, you understand the value of money and how important it is to have money saved up for a rainy day, bills, or future large ticket items. Teaching your kids smart savings habits at an early stage can help prepare a foundation for their bright financial future. These healthy habits will give them a head start in their finances and help build their toolkit for enduring financial fitness.