Financial Literacy Starts Early and Often
One of the best investments we can make in our community’s future is promoting financial literacy among our youth. Empowering children and young adults with the skills and knowledge they need to make fiscally responsible decisions as an adult is more important than ever! Here are some ways you can begin teaching your children about the importance of money management.
Allowances
The main purpose for allowances is to help children learn how to manage their money. However, just like in the real world, they learn that the money they receive has to be earned. Assign daily chores such as clearing the table after dinner, folding towels, or sweeping the kitchen floor. If larger tasks are tackled, perhaps you could reward them with a small bonus as a thank you for their hard work. You will find that when they want money, they will be more apt to ask how to earn it.Â
Model smart shopping habits
Before going to the grocery store, make a list. Get your child involved! Talk openly about how much money you are planning to spend and demonstrate how you are going to get the most for your money. While shopping, talk out loud about the purchases you are making and your thoughts on getting the most for your money without sacrificing quality.
Open a savings account
Bring your child with you to your local CAMPUS USA Credit Union Service Center to open a savings account or open an account online. A CAMPUS Kids Savings Account is a higher interest yielding savings account specifically for children and teenagers 17 years old and younger. Start a savings register and enroll in CAMPUS Online Banking with your child to help them track their initial deposit and any future transactions.
Set goals
All too often, kids view their allowance as their spending money; however, they will not be able to use their income like that as an adult. Teach them to prioritize the use of their money! If your child decides they want a new video game, help them figure out how much money they will need to save and for what length of time in order to purchase the game.
Money is limited
When your child decides that they want to spend a whole week’s allowance on a new toy, they may ask for an advance when they realize they do not have any money until the next time they are given their allowance. Find out how much the total cost of the toy is and teach them how much money they need to save in order to get that toy the next allowance.
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It is important for children to know how money can affect their lives now, and as they grow up. Come see a CAMPUS Representative or open an account online with your child. We are dedicated to providing products and services to help our members reach their full financial potential; even our youngest members!Â
By CAMPUS USA at 28 Oct 2019, 17:01 PM