Charting a Course for Raising Money Smart Kids
May 27, 2020 by Chevron Federal Credit Union
Since the start of the Coronavirus pandemic, almost 40 million Americans have filed for unemployment. Now more than ever we need to prepare our children to handle their future. This time can be used as a learning experience for them. Teach them to be ready for life’s many curveballs so if the worst were to happen, they are ready. Here are five ways to help chart a course for raising money smart kids.
1. Teach kids how to shop
A trip to the store can provide endless lessons in bargain-hunting and comparison pricing. A grocery store in particular has a large number of choices to compare with. Grab two boxes of similar cereal and discuss the difference. It’s a great way to introduce the concept of getting the same value for less money.
2. Deal hunting
From coupon clipping with the family to Googling for the best price, there is money to be found. Save the electronic barcodes and mailed coupons for items you plan on buying. Use this to talk about savings, refraining from impulse buying, and planning ahead for things you’ll need.
3. Dive into debt
A few conversations can be difficult to have with your kids – like debt. Maybe don’t discuss bankruptcy law with your five year old, but you can start with the basics of what money is and how it’s used.
When they’re older, being honest and open can provide positive lessons in money management. Most families have some sort of debt, and it’s OK to talk about. Explain it in simple terms (“sometimes you have to borrow money for big things, like a car or house, but should you borrow money to buy clothes or toys?”), and describe the steps you take to pay it off.
4. Cook meals together
Delivery is incredibly easy, especially now. It’s also easy to overspend on takeout. Families can benefit from healthy, well-balanced meals prepared at home. As an added bonus, you can get the entire family involved in preparing meals, which will teach kids how to cook for themselves when they’re older.
5. Make it a game
Allow your children to come up with their own cost savings strategies and then keep track of who can come up with the most savings each month. By making it fun and by offering an incentive, you can keep your children interested and engaged in the concept of saving.
When this is all over, it is up to us to come out the other side with a better understanding of how to protect ourselves financially. Educating children now on the importance of financial security will go a long way in developing independent young people ready to take on all the challenges the world has to throw at them.
BALANCE is an amazing resource for all our members to utilize when taking on life's milestones. With trusted guidance available for free, they are ready to help everyone on the path to financial wellness. This article and many more can be found on their website: balancepro.org.