It is never too early to start teaching your children about wise money habits. These are important skills that they will need throughout their life. But sometimes parents are uncomfortable teaching their children good money skills because they don’t feel financially literate themselves. First Security State Bank is here to help you gain confidence in your financial wisdom with these simple lessons to teach your kids about money.
Lesson One: Money isn’t free
While an allowance is a good way to teach children how to handle money, it does not teach them that people need to work for money. Instead of dishing out a weekly allowance, create a chores list for your children. Assign each chore a monetary value and pay them once a week for the chores that were completed.
Lesson Two: Saving and giving
When your child has earned some money, create three categories: One for saving, one to spend, and the last to give to a charity that your child chooses. This will teach your kids how to sort their money and not spend everything they earn. These habits will follow your children into adulthood and help them think through financial decisions wisely.
Lesson Three: Saving for things we want
As your child saves up their earnings, have them earn something that he or she really wants. Help them set a goal and offer them extra jobs to earn more.
It is important to remember that the number one place your children are learning about money and wise spending is from you. Be a good example of money management to show them what it really means to take care of your finances. There are many more lessons that you will need to teach your child as they grow up. These are simple lessons that can start your child on a smart path of money management.
April is Financial Literacy Month and First Security State Bank wants to help our customers get a firmer grasp on what it means to be wise with your money. Please contact us with any questions or concerns you have.