You work hard to help your kids establish long-lasting, positive habits. As you teach them to eat healthy and develop strong work ethics, here are a few ways to help your kids gain smart money habits they can use throughout their lives.
Provide an Allowance in Exchange for Chores
One time-honored way to help kids learn the value of money is by providing an allowance in exchange for chores around the house. It instills the knowledge that in order to have money, they need to earn it with work on the front end. The amount can be whatever you feel comfortable and chores can be anything from cleaning the dishes to sweeping the floor and everything in-between.
Open an Account for Your Child
Your child undoubtedly has a game, toy, piece of clothing or experience they desire that costs more than just pocket change. Try telling them they can work toward that goal by saving money. Ameris Bank offers minor savings accounts for anyone 18 years of age and younger that can help you teach them the value of saving early. You can even offer them incentives to teach them about investments and interest by providing a small percentage or bonus of your own when they hit certain milestones toward their goal to help them see the benefits of saving over time.
Steering Clear of Impulse Buys
No matter your age, many of us can fall victim to the temptation of an impulse buy. When your child is drawn to an item in such a scenario, tell them to wait a period of time. Then, revisit it and see if they still have the same initial passion for that purchase. This lesson will teach them the difference between want vs. need and save them in the long run from spending their money on something that only offered a fleeting feeling.
Teach Them the Ins and Outs of Credit Cards
Once many Americans turn 18 years old, they begin seeing a flood of credit card offers in the mail. Credit cards hold a valuable place in the world but can also find unsuspecting teenagers in hot water. Teach them that a credit limit is not “free money” and anything spent will have to be paid back with interest. That way, when they are out of the house, they won’t find themselves with a mountain of debt and no way to pay it back.
There are tons of ways to prepare your kids to be financially responsible as they grow up. Be patient, be consistent and before long, your kids will have healthy financial values they can carry with them for life.
Want more tips?
Raising Financially Literate Children: https://advice.amerisbank.com/family-finances/kids-money/article/raising-financially-literate-children
Allowances & Children: https://advice.amerisbank.com/family-finances/kids-money/article/allowances-and-children
Introducing Your Teen to Banking: https://advice.amerisbank.com/family-finances/kids-money/article/introducing-your-teen-to-banking
Kids & Money: https://advice.amerisbank.com/family-finances/kids-money
Published April 2022
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.