Money management is one important topic kids need to learn about in order to be successful adults. Continue reading for tips on how to set children of all ages up for future financial success.
Use board games
Board games, like The Game of Life or Monopoly, are great ways to help kids understand how money works and how to be responsible over their own money. During games, they make their own choices on what to spend and learn how it is necessary to budget their money in order to be successful in the game.
There are also many fun money games for kids online. Online games help kids learn how to identify, add, and spend money. Check out fun online games for kids to find some ideas.
Pay an allowance per chore
Pay your child per chore, rather than paying the same allowance each week. Keep track of the chores they finish and give them the total amount they earned at the end of the week. When paying per chore, your child is rewarded for working harder and helps them learn that money is earned not given.
Small bills encourage savings
Pay your child’s allowance with bills that encourage them to save. For example, instead of giving your child a $20 bill, give four $5 bills. Since the cash is already broken up, setting aside $5 into savings is easy.
Avoid impulse purchases
When you’re out shopping, don’t give into impulse buys. If your child asks for a new toy or piece of clothing, encourage them to use their own money. If you buy a new toy during each shopping trip, they will begin to expect instant gratification every time they enter a store. Suggest that they should wait a day before deciding whether it buy. This teaches children to think about whether they need something before they purchase it.
Set a goal
Teach kids how to save by helping them set a goal of something small to purchase. Encourage them to help around the house and save money for their goal. When they finally have saved up enough to purchase the item, they will feel satisfied knowing that they earned it on their own through hard work.
Give them the responsibility of a bank account
Once kids are old enough, let them have the responsibility of their own bank account. During the month of September, Common Trust Federal Credit Union is offering a student package for elementary, middle, high school and college students which includes a draft account, debit card, free online banking and more. Visit our student package promotion page or stop by our branch to learn more.