How To Raise A Money Smart Kid
It’s easy to be money conscious 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 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 a T. Rowe Price’s 2016 Parents, Kids, & Money Survey, less than half of parents (44%) don’t take advantage of teachable moments throughout the day to discuss financial topics.
At Launch, we believe it’s important to starting teaching kids at a young age the value of money and how to manage it. We do this through our Kids Saving Accounts and Teen Savings and Checking accounts. Our high school branches 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
Helps 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 be more aware that almost everything costs something.
Start A Savings Account
This is a safe and secure way your kids can 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 his or her account balance. Launch has a great beginners guide to saving money.
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, and 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. According to the Parents, Kids, & Money Survey, it looks like this is a problem for many parents. Almost half of the participants(46%) say they’ve gone into debt to cover something their kids wanted. The upside is, there is an alternative to paying for it yourself and it can be a great learning opportunity for kids. If there’s something your kid really wants, 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.
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 not everyone is fortunate enough to have extra money.
Create A Basic Budget
This will teach your kid 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 = toy. Bankaroo has a simple article on setting up a child’s budget.
We hope these simple tips are helpful in starting 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 help you start your child’s financial journey by setting up a kids and teen savings accounts.
