Everyone knows how important it is to teach kids about money, but sitting them down for a lecture isn’t the best way! They learn money skills best through hands-on activities and real-life experiences. Here are six ways to provide financial education for the children and teens in your life.
1. Make money talk part of everyday life.
Talking about money doesn’t need to be stressful or awkward. Share your financial habits and attitudes naturally in everyday conversations. For example:
- “We’re saving $50 a week for our family vacation.”
- “Let’s compare prices before we choose a new washing machine.”
- “I’m planning our grocery list to stay within our budget.”
- “Our family gives money each month to our church/charity.”
- “While you’re doing your homework, I’ll pay some bills.”
- “I wish I hadn’t bought X because it wasn’t worth the money.”
- “I really want to buy X, but I’m going to think about it for a few days.”
2. Give your children a regular allowance.
A steady allowance teaches kids how to plan, save, and spend wisely. Starting as early as kindergarten, give your children a regular cash allowance. Avoid tying the allowance to rewards or punishments, which could teach them they should only do chores, behave well, or study when they are paid for it. However, you can encourage their entrepreneurial spirit by offering extra jobs to earn money, separate from their regular chores.
As they grow older, increase their allowance based on their age and responsibilities. For example, teens can receive a larger amount to manage expenses like buying their own clothes or contributing to their phone bill.
Regardless of your child’s age, provide an allowance you can consistently afford within your budget.
3. Teach kids money management in age-appropriate ways.
Help your kids manage money from an early age! A simple way to begin is to give them three containers—one for spending, one for saving, and one for sharing. The United States Mint’s Spend, Save, or Share has good ideas for this system. Whenever your kids get their allowance (or birthday money), you can work with them to decide:
- How much money to put in each jar
- What they want to save for, both short-term and long-term
- The difference between needing something and wanting something
Of course, their ability to handle their finances will mature as they grow. Teens may want to use a simple spreadsheet or a budgeting app to track their spending and savings. To prepare them for bigger responsibilities, consider giving them a prepaid debit card to practice managing money before they’re ready for a credit card.
4. Discover how much they already know.
Introduce your kids to the Map Your Money Journey survey from the Consumer Financial Protection Bureau. The survey helps children and teens understand their money strengths and learn about areas where they can grow. There are three surveys to choose from: elementary school, middle school, and high school. These surveys focus on three key areas: planning and self-control, money habits and values, and money knowledge and choices. These tools can be an excellent starting point for meaningful conversations about money.
5. Make learning about money fun.
Kids learn best when they’re having fun! Coast Central’s Practical Money Skills program offers games and activities for children and teens, such as Peter Pig’s Money Counter (for ages 5-8) and the immersive online game The Payoff (for ages 14 and older). Practical Money Skills also includes an award-winning financial curriculum for educators and parents.
6. Open savings accounts for them.
Another really practical way to teach kids about money is to get them a savings account. Not only will it make them feel grown up, but they’ll also learn how financial accounts work—including the power of compound interest to grow their money over time.
- For Kids 12 and under: Sign them up for a Kirby Kangaroo Club membership at Coast Central Credit Union. You can open their account for just $5! As they grow, Kirby can help you teach them about financial responsibility. Each Kirby membership kit comes with a Savings Passbook for tracking deposits and withdrawals, along with some fun gifts.
- For Teens 13-17: With Coast Central’s Green Teen$ savings program, your teen can open a Youth Savings Account with just $5 and receive cool gifts and a Deposit Card. When they make at least a $5 deposit, they will receive a stamp. After ten deposits, the card turns into an entry for quarterly prize drawings. The more they save, the more opportunities they have to win!
Discover the benefits of Coast Central membership for the whole family.
Teaching kids money management is one of the greatest gifts you can give them, laying the foundation for a lifetime of financial success. At Coast Central Credit Union, we’re here to support you and your family every step of the way. Discover how membership can help you make the most of your money and build a brighter future together: coastccu.org.
Coast Central—Where YOU are Central.