It is Financial Literacy Month. Now is the perfect time to make sure you and your children are spending smart and saving wisely. Having your kids understand how the economy works, where money comes from and where it goes is the answer to healthy financial literacy.
Here are our top five tips for teaching your kids financial literacy:
1. Be a good role model
Kids copy what they see and experience. Show them how to budget, save, and spend smart.
2. Give them an allowance
Giving them an allowance in exchange for chores will teach them how money works and is earned. Explain the benefits of long-term savings. When they want to buy something they do not necessarily need, explain that they must save their allowance and pay for it themselves.
3. Get a job
When you have teenagers, let them work, whether that’ babysitting, lawn care, or helping out in the family business. A job will teach them the value of money.
4. Set savings goals
Break down savings goals with your kids. If they want to purchase an item that costs hundreds of dollars, explain that their savings will increase by accumulation of allowance, birthday, and holiday money.
5. Open a savings account
Do you kids have savings accounts? At Warren-Boynton State Bank, we can help establish savings accounts for your children at any age.
If you have any questions about savings or checking accounts, please visit one of our branches in New Berlin, Modesto, Palmyra, or Springfield.