How to Teach Kids about Money
According to a recent article on Forbes.com, one lesson kids do not learn in school is how to responsibly handle money. “Parents do a great job teaching kids good manners and how to be safe…” says Mary Hunt, personal finance expert and author, “but so often parents neglect the most important thing of all – to prepare them to be financially astute.”
Routine tasks and chores can be great opportunities to show your kids how to handle money. Hunt says it’s important to bring kids to a financial institution to show them how it works. Let them watch you make a deposit, or sit down with a bank manager and encourage the child to ask questions.
“Keep teaching your kids new and more complicated concepts as they get older; they’ll understand,” Hunt says. “It’s our job as parents to give them roots and wings, so they can survive and thrive in the real world.”
First Castle FCU has a great tool to teach children about about saving money, our Castle Kids’ Club Accounts. Represented by our mascot, “Dinero” the dragon, our Castle Kids Club Account features a high rate of interest and rewards your child for “making the grade” by granting them $1.00 for every A they earn on their year-end report card*.
Adapted from: “How to Raise Financially Savvy Kids” by Jenna Goudreau. Retrieved from: http://www.forbes.com/sites/jennagoudreau/2012/09/04/how-to-raise-financially-savvy-kids-teach-money-skills/ on September 13, 2012.
*must have at least a $50.00 balance, $5.00 max
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