Financial Literacy at Home
As quarantine continues we wanted to share some advice for parents looking to teach their children good money habits from home. Set your kids on the path to financial independence by following these six tips.
Step 1: Introduce an Allowance
For most young children money is intangible and difficult to understand. Start by introducing a small weekly allowance earned by doing tasks around the house. This helps teach children that money is earned and has value.
Step 2: Encourage Saving for Small Goals
Once you have established a weekly allowance for your children encourage them to save it for small attainable goals. This is the perfect opportunity to introduce a clear piggy bank or savings jar, so the child can watch their savings grow over time. As more money is added make sure to discuss this with your child and congratulate them on growing their savings.
Step 3: Explain Banking Basics
While visiting your local Manasquan Bank branch with your children isn’t possible right now you can still teach your kids about the banking process. If your child has saved change, give them coin wrappers and allow them to roll the coins. In the future, allow them to bring their rolled coins to the bank to be exchanged!
Step 4: Be Mindful of Your Actions
Studies have shown that money habits are formed by the age of 7, therefore it’s crucial to set a good example. Make sure your actions support the financial lessons you are currently teaching.
Step 5: Encourage Smart Purchases
Once stores have safely reopened and your children have saved enough, go with them to the store and help them make smart purchase decisions. That toy they’ve been begging for? Calculate the price and show them how much is coming from their savings jar. By visualizing the cost your child will gain a greater understanding of how they want to spend their money. Encourage them to not spend all of their savings at once and to consider saving for special trips or holidays.
Step 6: Teach the Value of Giving
Times like these really spotlight how important it is to give back. Teach your children that money can be used to help others instead of focusing solely on purchases. This lesson will be one they carry as they grow older.
We hope these tips will help guide you as you teach your children the value of money and the importance of saving. Looking to start a Savings Account for your children or yourself? Browse our Personal Savings offerings today!