Whether your motivation is to save your kids from repeating your past financial mistakes or to give them a head start on saving—shrewd parents are taking an active role in teaching their kids how to plan for and achieve their financial dreams. The challenge comes when deciding how best to do that.
How to teach kids about money
There are many ways to approach financial literacy with your kids—ultimately, it’s up to you when you start, how in-depth you go, and whether you choose book learning, practical experience, or some kind of hybrid.
Here are a few general guidelines:
- • Talk openly about money. Most children like to be included in what their parents are doing. So, explain to them the choices you’re making with your own money (in simple terms, of course). Everyone has different views on finances but teaching your children the basics of spending and saving can set them on a positive path that can last their whole lives.
- • Consider a weekly allowance. For younger kids, this gives them an opportunity to start making financial choices before they have their first job. If you prefer your kids not get paid for everyday chores, consider creating a group of “extra” chores that you will pay for.
- • Keep the discussion going. The real education comes when kids can see the result of their financial choices and are given the opportunity to make different choices in the future. You’ve given them some money and explained their options for how to use it. Now follow through and talk about how their choices panned out.
- • Include charitable giving. Philanthropy is a wonderful way to share your family’s values and teach your children about saving and giving back to the community. Children naturally want to help others, so teaching them to save their money to help someone in need just makes sense—and getting them into the habit of saving for charitable giving when they’re young means they will likely continue this practice as they get older.
Fun, free financial education
Gamify it! For a new spin on financial education, try Banzai—a fun, easy way to learn about finances from Mountain America. Here’s what you’ll find:
- • Banzai games—Choose your own personal finance adventure. Whether you’re a child, teen or adult, make financial choices and see where they take you!
- • Banzai wellness center—Everyone has financial blind spots, right? The content library is full of great information about topics that can often leave us confused, flustered or just plain tired.
- • Banzai is FREE—Mountain America provides this financial education program used by millions of teachers and students around the country to you and your family at no cost. Experience real-world financial education in a fun, safe and effective way. Register for your FREE Banzai account today!
However you choose to impart practical financial knowledge to your kids, the best tip is just to start! And, who knows—you may learn a few things along the way, too.
Sharon is a wife, a mother, and the Chief Marketing Officer/SVP of Mountain America Credit Union, where she oversees the marketing, PR, social, and web departments. She has dedicated her life to helping people make smart decisions—whether financial, professional, or personal. “It’s why I love all of my roles,” says Sharon. Reach her at scook@macu.com. For help with financial needs, call 1-800-748-4302, and a Mountain America representative will assist you.