April is Financial Literacy Month. Did you know that financial habits develop during ages 6 to 12? Here are our tips for instilling healthy financial habits in your children early.
Glass jar
Use a clear jar to save allowance, birthday, and holiday money. Piggy banks are a great idea, but they do not provide kids with the visuals they need to help develop an understanding of saving versus spending.
Set a good example
Children learn from our behavior. If you are practicing healthy financial habits, your children will too.
Basic economics
Explain that people make money and people spend money. And perhaps most importantly, everything costs money: food, clothes, toys, experiences, etc. You must differentiate between wants and needs.
Give commissions
The better you perform your task, the more commission you will receive versus a pre-set allowance.
Avoid impulse buys
Show your children the benefits of writing a grocery list and sticking to it.
The gift of giving
Explain to your children the importance of giving and involve them in charitable or volunteer work. Whether it is collecting non-perishable food items for a local pantry, donating funds to a nonprofit, or purchasing holiday gifts for those that cannot do so themselves.
Teach contentment
Show your children that life is not about how much money you have, how many items you own, or participating in the latest trend or fad. Instead, show them that life is about family, friends, experiences, memories, and having sufficient funds to live comfortably and reach your goals.
If you have any questions about opening a savings account, please visit one of our branches in New Berlin, Springfield, Modesto, or Palmyra.