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Tips to Get Your Kids on the Right Financial Path

As a parent, there are several things you can do right now to help your kids get on the right financial path. Here are some tips from the Credit Union National Association:MoneyTalkKids_blog

Younger than 5
  • Use coin savers to help children learn how to identify coins and count money.
  • Introduce the concept of money by giving children small change to spend occasionally when you go to the store. Limit options to save time and reduce conflict.

Ages 5 to 10
  • Give a weekly allowance to offer hands-on money management experience. Because children know they’ll regularly get a set amount of money, this makes it easier to learn how to save.
  • Let children save for, and buy, something they really want. Rewards reinforce young children’s savings habits, so tie saving to spending.
  • Use three containers labeled “Spend”, “Save” and “Share”. Suggest that children contribute a portion of their allowance and cash gifts to each to teach how to spend wisely, save regularly, and give to others.
  • When the “save” container builds up, take children to the credit union to open a savings account, if they don’t already have one. (We offer our Kids Savings School account starting at age 3!)
  • Provide children with opportunities to earn extra money by doing jobs not included in their regular responsibilities.

Ages 11 to 14
  • Include children on shopping trips to teach them what things cost and smart shopping techniques. Let them help compare product qualities, prices, return policies and warranties.
  • Encourage odd jobs: babysitting, yard work or pet care.
  • Encourage children to use their own money to buy beyond-the-basic clothing and accessories.

Ages 15 and older
  • Discuss savings plans for long-term goals, such as education and cars. (We offer our Edge Teen Savings Account starting at age 13!)
  • Consider giving teens a seasonal clothing allowance beyond their regular allowance. After setting guidelines and limits, let them make their own choices. Consider helping financially responsible teens open a checking account.
  • Include teens when planning a large purchase, such as a car.
  • When your teenager begins driving, review car insurance, maintenance, and repair costs.
  • Consider encouraging financially responsible older teens to use a debit card with their checking accounts.

The credit union is federally insured by the NCUA. Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
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