We all want to have kids who grow up to be financially successful and a key element of that is starting their financial education early. Actively teaching your kids about the value of money and balancing needs versus wants will help them grow into financially-conscious individuals.
To start financial conversations with your family, consider the following tips:
- Explain the differences between needs and wants. Help your children understand the reasoning behind your purchases and the requests they make for toys, video games, etc.
- Pay in cash when your younger children are around – seeing a tangible exchange for goods or services will emphasize the fact that once you spend your money, it’s gone.
- Engage your children in weekly errands. Show them the value of buying less expensive, bulk options and have them use their math skills to calculate the better deal. Purposeful shopping will go a long way in their financial future.
- Allot your children an allowance. As they continue to age, transition their allowance plan to bi-weekly and monthly payments. This will enhance their ability to budget their own money.
Educational games are also a great way to get your children excited about making the most of their money. There are many online interactive games to enhance their financial education. Check out a few of our favorites:
To kick-start your child’s financial future, open a Youth Savings account for them at your neighborhood credit union. There are three account options based on your child’s saving needs, and our knowledgeable branches are ready to help your family chose the best account for your young saver.
Editor’s Note: Segments of this article were taken from Forbes.com.