12/14/23

How to Teach your Children Smart Money Habits

When was the first time you started to grasp the concept of money? Shopping with a parent or guardian, playing an online game where you could buy/trade things? Teaching your child about smart money habits from a young age can set them up for success in the future.

Children are more likely to understand the concept of money when you make it a game. For example, you can turn shopping trips into an exciting game by asking them to add up the items collected in their basket, pay with cash so they can count the change, etc. Get your child involved, have them pick out a meal and give them a budget, show them the difference between something on sale versus a higher end product.

Setting achievable goals with your children is a great way for them to grasp the concept of money. Start slow, with a realistic goal like a new toy or a day at the amusement park. Once they have a goal it will help them figure out how to save and achieve their goal, set a reasonable timeline and how much they need to put away. Encourage them to earn money by getting good grades, doing chores around the house, setting up a lemonade stand, babysitting, taking care of pets, washing cars and doing yard work etc. You can also offer your children saving incentives, every time they reach $50 you can reward them with $10.

By motivating your children to save and teaching them about money starting at a young age, you can help them build the smart money habits they need to make financial decisions down the road. That is why we created our youth account, so your child can learn and develop smart money habits! A parent or guardian can open a youth account in the branch or online for a child at any age, all you need is a valid driver’s license, a second form of ID and a child’s social security card. It is easy to contribute to their new account via in-person, digitally or make an automatic transfer from an internal account. With this account there are no minimum balance requirements, no monthly fees and you and your child are NCUA insured, ensuring your money is safe. Plus, PFCU will help you jumpstart your youth account and will match your first deposit up to $50*!

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