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Ten Ways to Teach Your Kids About Money

October 14, 2021 by  
Filed under Conversation

Ten Ways to Teach Your Kids About Money

By Craig Kirkland, EVP/Director of Retail Banking, Nevada State Bank

Craig Kirkland, EVP/Director of Retail Banking, Nevada State Bank

If you want your children to become successful and responsible adults, start by teaching them how to make good choices about money. Follow these 10 steps to give your kids a good financial education:

1. Prepare yourself to be a good teacher. Tap into the myriad of online tools and resources that teach you how to explain money management to your kids.

2. Talk with them about money. Carve out a time when you’re not distracted by TV or digital devices, then have a real conversation and actively listen to what they say.

3. Give them a weekly allowance. The amount itself is not important. It’s the fact that you are entrusting them with money and guiding them on how to make good choices in spending and saving it.

4. Even small children can learn how to save. Get an old-fashioned piggy bank or use any kind of container with a lid. Then, go through the steps of counting the money and putting it away in the bank.

5. Explain why it’s important to save a portion of their money, how it’s possible to save up for a large purchase, and how compound interest works. Set savings goals and track how you’re doing.

6. Open a savings account in their name. Although bank accounts can easily be opened online, bring them into a bank branch so they see how money is handled and how banks work.

7. Show older children how to leverage technology in banking – how you can deposit a check with your phone or tablet, pay bills online, check activity on your account, etc.

8. Talk about wants versus needs. Then, try to model the behavior. If you’re shopping, point out which things are necessary and which are only “nice to have.”

9. Talk to older kids about responsible use of credit, including the pitfalls of using too much credit. Explain how interest and fees can make it difficult to pay back what’s been borrowed.

10. Let them know that you envision a bright future for them. “When you go to college…”; “When you start your own business…”; “When you buy your first home…”

Financial literacy has a myriad of benefits and can help ensure that children develop good money habits and achieve financial success throughout their lives.

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