Teaching Kids about Budgeting, Earning and Saving

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August 2022

Financial literacy is as important for children as it is for adults. In the same way that parents are advised to talk to their kids about “the birds and the bees,” it’s a good idea to set aside time to discuss money matters.

Research shows that by the age of seven, money habits and a specific money mindset have been formed. All the more reason for adults to discuss with children how money works and let kids see purchase transactions as they happen. When parents give children a piggy bank or savings account, it aids their practical understanding of how to make decisions that lead to financial growth and stability.

If parents can find creative ways for their children to earn an allowance, this will go a long way towards instilling the concept of getting rewarded for work well done. The allowance can be a catalyst for teaching kids about how their money can grow if it is invested wisely.

Adults who serve as role models of financial prudence to their children are setting the stage for smart spending and saving that will serve their offspring as they go on to establish their families of their own. 

On the other hand, if a parent preaches about the importance of saving, yet takes the children on a shopping spree and complains afterwards about the state of the family’s finances, this sends mixed messages.

If adults make it a priority to show their children that they are good stewards of money and consistently educate them about employing wise spending and saving habits, their kids’ personal finances are likely to be in good shape when they reach adulthood.

At AffinityPlus Credit Union, we offer our SMARTJunior accounts to help your children start the habit of saving. We also offer periodic savings challenges to encourage our young members to build their savings and carve out a better financial future.