Teaching your children about money may seem like a daunting task. So here are some simple, age-specific recommendations on how you can teach your children to be financially responsible – before they get their first credit card!
Kids are most susceptible to everything you tell them at this age, so make sure you teach them good habits now. Buy them a piggy bank, and give them some money to specifically put into it. If they receive money for gifts, make sure to show them to save some of that as well.
This is a good age to start giving kids an allowance. Bring them in to Fidelity Bank and help them open their own savings accounts, and instruct them to save a certain percentage of their allowance every week. Teach them the value of investing by demonstrating how much money they can save through compounding interest. This is a good time to start including them in discussions about the family budget, and showing them that nothing comes free. Children in this age range are just starting to care about things like the latest toys and specific clothing brands, and now is a good time to help them learn the value of money.
Pre-teens are looking for some independence, and getting their first job might be a perfect way to do so. They can mow the neighbor’s lawn, babysit their cousins or shovel snow for Grandma. Have them come up with ideas that suit their interests, and propose these money-making endeavors to their possible employers. Kids in this age range are ready to learn about the onslaught of credit cards – and how dangerous it can be to spend over the amount of money you know you’ll make to pay off your bill.
Teenagers are old enough to have their own jobs, and can really start to take (guided) control of their financial future. Discuss with your teens the importance of staying on top of credit card debt, and recommend that they start with a checking account and debit card instead. If they DO get a credit card, make it a low-limit card so that you and they can work on budgeting until they get the hang of it.
If you feel like you need some additional help explaining any of these financial topics to your children, bring them by Fidelity Bank! We’re here to support you and your family, just like always!