How to Raise a Money-Smart Kid
Updated: February 26, 2024
It’s easy to be money-conscious as adults, but do you know how to raise a money-smart kid? As adults, we have bills to pay, mouths to feed, and cars to gas up, but those worries aren’t on most kids’ minds. We also have blogs, videos, and financial resources to gain better money management skills, but what do our kids have? They have parents, grandparents, and/or caregivers to help guide them, but it isn’t always easy to discuss how to raise a money-smart kid. According to T. Rowe Price’s 2021 Parents, Kids, & Money Survey, a record number of parents followed the recommendation with 47% of parents having money conversations with their kids once a week or more.
At Launch, we believe it’s important to start teaching kids at a young age the value of money and how to manage it. We do this through our Minor Saving Accounts. Our high school branches also provide area students with unique hands-on learning experiences. Launch wants all children to grow up money-smart, so we’ve rounded up some tips below on how to raise a money-smart kid.
Show Them It Costs Money
Help show your kids the value of money by pointing out what things cost when you’re out shopping, watching TV, or at the grocery store. This can help them become more aware that almost everything costs something.
Start a Savings Account
This is a safe and secure way for your kids to watch their money grow. At Launch, we offer kids and teen savings accounts. With one of our accounts, they will start earning dividends regardless of their account balance.
Clear Jar Savings
This is a good one for young children. Clear jars are a quick, cheap, and easy way to show kids what saving money looks like. Whether the money is coming from allowance, birthday cards, chores, or loose teeth, they can see the money add up quickly.
Incentivize Saving
It can be hard to say “no” when your kids ask for something. If there’s something they really want, teach them how to save up for it. Whether this is with chores or allowance, if they save their money it can be theirs in a little bit of time. It can be a great learning opportunity for your kid.
Donate to a Charity
Volunteer at a few different charities as a family. Next, ask your child to pick one to donate to regularly. Continue volunteering every so often so they can see their contribution at work. This is a real-life example of showcasing that not everyone is fortunate enough to have extra money.
Create a Basic Budget
This will teach your kids how to spend the money they earn. On a simple basis, you can help them separate their wants and needs. This could look like: a need = lunch money and a want = a toy. Bankaroo has a simple article on setting up a child’s budget.
We hope these simple tips help start your child’s journey to financial success. The Parents, Kids, and Money Survey says if parents discuss financial topics at least once a week with their kids, kids are almost twice as likely to say they are smart about money. Let Launch CU help you start your child’s financial journey by setting up a minor savings account.
