April is Credit Union Youth Month, and Carolina Trust is celebrating in full swing like we do every year. This year's official youth month theme is "Save Small. Dream Big. at your credit union™, and one day you may have enough to fulfill a financial dream!" This theme makes saving for the future fun and encourages younger members to create financial dreams and work hard to see them through.
Youth Month is a great annual opportunity to engage with our young members and teach them about important financial topics. Taking financial concepts and putting them into terms that kids can understand can be tricky, so I'm here to help!
In this BALANCE blog post, you'll learn different tips and tricks to raising kids that are financially savvy.
One of the most important gifts you can give your children is an understanding of how to manage money. We all want our kids to be financially-savvy adults one day, but it’s become increasingly difficult in today’s swag culture. Here are some things you can do to ensure your child grows up with a basic understanding of financial management:
Make sure your child has money to manage
Whether you choose to give your child an allowance or make them earn it, the key is to provide your child with the opportunity to manage their own money. Even a small amount can help provide valuable lessons.
Let them know what expenses they must pay for
Naturally, you have the basics covered (basic food, clothing, and shelter). If children want the name brand shoes or a new video game, let them know they’ll have to save for it. Help them budget and save their money to make the purchase.
Don’t bail them out
If your son or daughter spends all their money and can’t afford that cool new toy they wanted, too bad. Let them know it’s time to start saving up again.
Help your child shop wisely
Show them how to search for specials online and in newspapers. Show them how the same item can vary in price depending on when and where you buy it. Introduce them to overstock sites, garage sales, and bargain outlets
Teach your kids about investing
Teaching money to your kids doesn’t just mean coins and checking accounts. In fact, one of the most important (and easiest) financial concepts for children is investing. With investing, they can watch their money grow while learning that gratification isn’t always instant. As you start the conversation about investing, focus on the big picture. When your kids buy stock, they’ll own part of the company. When the company makes money, they make money (and vice versa). Just be sure to avoid jargon. Otherwise, you’ll watch their eyes glaze over as you try to explain “diversification.”
