Life Stages - Childhood

If you asked most kids where to get money from, they would answer "from the ATM"!

It is a fact that if you start early teaching your children just the basics of earning, saving and spending money, you are giving them a great start to a lifetime of smart financial decisions!

Don't know where to start? Use these simple lessons:

Lesson 1: Learning to handle an allowance

If you decide to give your child an allowance, here are some things to consider:

• Talk with your child about what he or she will do with their allowance. If your child wants to buy something special, this is the perfect opportunity to show him or her how much they will need to save each week until they have enough to buy it.
• Its really important to set a "pay day" for the allowance, and be sure to pay your child on that day!
• If your child handles their money well and sticks to the savings plan, think about giving him or her a "raise".

Lesson 2: Open a Kid's Club Savings Account at the Credit Union

Opening a Kid's Club Savings account is a simple way to introduce your child to the concept of saving and instill good savings habits.

• Each month your child will receive an account statement. This is a great chance to start teaching him or her about earning interest on the money he or she saved and how the interest earned will make his or her savings grow!
• Let your child take a few dollars out of the account occasionally to keep him or her interested.
• Offer to match the interest earned in the account as an incentive to build their savings.

Lesson 3: Setting and Saving Goals

When your child earns money from an allowance or as a gift from relatives, you probably want them to save it, but they want to spend it. Kids have a hard time saving. So how do you get your child excited about saving for something the really want? Here are a few ideas:

• Find out what your child wants, like a new bike or video game.
• Write down the price and how much must be saved each week or month to save enough to buy what they want. This is a good time to show him or her how adding just a dollar more to their savings will cut down the time it takes to save the money they need.
• Make a savings chart with a picture of what he or she is saving for. This will help make the connection between setting a goal and saving for it.

Lesson 4: Becoming a Smart Shopper

The urge to run right out and buy the latest and greatest "stuff" we see advertised is tempting, especially children! But we all know, that if we are just patient and comparison shop, we could save lots of money. Here are a few tips to help your child be a smart shopper:

• Don't be afraid to say no when your kid asks for something. Instead, teach your child to think carefully about purchases and if they really want something, they can save for it or put it on a birthday or holiday wish list.
• Take your child to the grocery store with you and explain to them how to compare item based on quality, quantity and price.
• Let your child make mistakes. If the toy he or she "must have" turns out not to be what they expected, let him or her learn from the experience. This will help them become discerning consumers and make good choices.

For more tips and educational, money based puzzles, quizzes and games designed to teach children of all ages about finances. Visit our Kirby Kangaroo and CU Succeed pages!