It’s never too early to start teaching children the basics of finance. As the summer draws to an end, take the opportunity to explain to kids what they can do with that extra cash they may have earned. Whether they spent their days mowing the lawn or selling lemonade, it’s the perfect time to teach your child financial lessons that will last a lifetime. Here are some teachable moments to help you get started:
• At the bank. When you go to the bank, bring your children with you and show them how transactions work. Get the manager to explain how the bank operates, how money generates interest and how an ATM works. Click here to view all of Stock Yard’s locations.
• On payday. Discuss how your pay is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.
• At the grocery store. Explain the benefits of comparison shopping, coupons and store brands. Emphasize the value of the purchase, and include wants versus needs.
• Paying bills. Explain the many ways that bills can be paid: over the phone, paper or by check, electronic check or online check draft. Discuss how each method of bill pay takes money out of your account. Be sure to cover late penalties, emphasizing the importance of paying bills on time.
• Using credit cards. Explain that using a credit card creates a loan that has to be repaid. Share how each month a credit card statement arrives in the mail with a bill. Discuss the features of different types of cards, such as ATM, debit and credit cards.
What are some ways you teach your children money management? Comment below!
Resource Information: American Banker’s Association