3 Great Financial Habits to Teach Kids
Monday, September 3, 2018
Financial literacy isn’t something to take lightly.
In this volatile post-recession era, with pensions gone the way of the dodo and stock market indices always rising and falling, instilling the right financial habits in your children is more important than ever before.
Like routine exercise and healthy eating habits, positive behaviors—even financial ones—are particularly hard to quit, especially when experienced early and often in a child’s young life.
With all of this in mind, what financial behaviors should parents encourage in their young people?
Monitor Your Checking or Savings Account Regularly
According to a recent study by the Organization for Economic Cooperation and Development, American 15-year-olds with bank accounts earned higher-than-average scores on financial literacy examinations than those without them.
The sooner they become familiarized with the terminology and the benefits of responsible banking, the better.
At SAFE, there are Youth Checking and Savings Account options available designed specifically for members age 13 to 17. Explore these and other banking options with your child today.
Balance Checkbooks by Hand
Yeah, we said it: by hand. As in, not on the computer.
The tactile experience of charting how much money is coming in, versus how much money is going out, will build up a strong muscle memory for your child and hopefully inspire them to take greater spending precautions than they normally would.
Save with an Objective in Mind
Nothing makes an abstract concept like saving more tangible than a puppy.
If you’re saving with a particular goal in mind, like buying a family dog, your young person is going to take meeting their weekly financial benchmarks with the utmost seriousness.
Encourage your child to keep a savings objective in mind, and then help them cultivate a deposit pattern that will help them make regular progress toward that objective over time.
Interested in learning even more about responsible financial habits?
The Consumer Financial Protection Bureau’s (CFPB’s) website offers a wonderfully comprehensive set of talking points, exercises, and games to play with children age 3 to 18 that emphasize healthy spending and saving habits.
That’ll serve as a more than satisfactory enough roadmap for you and your child as you embark on this new savings adventure. And remember, nothing cultivates good savings skills better than practice: open a Y Savings Account here at SAFE today!