How to Teach Your Kids About Money | First Volunteer Bank

There are a number of different talks we are in charge of as parents. The one we want to discuss today is the “money” talk.

And it’s not just a one-time talk, either. You should have conversations with your kids about money throughout childhood, starting now! Our team at First Volunteer Bank has some tips to share on how to do just that.

Teaching Money Lessons

Have you had the discussion about personal finances yet?

If not, what are you waiting for? If you have, are you using everyday lessons to build the money skills your children will need to be financially successful in life?

Fortunately, when it comes to the money talk, there are a number of different ways you can teach your children about money:

First, consider giving your child an allowance. An allowance is helpful in two ways—it helps kids learn the value of a dollar and it also helps them learn about saving.

Depending on your child’s age and development, help him or her set attainable goals for saving money. That may be a certain dollar amount of each allowance, or it may be a percent as the child gets older and understands percentage.

Second, you also want to teach your child about a budget. Depending on his or her age, your child might not have very many expenses. But that doesn’t mean he or she cannot learn the value of a budget.

Next time you go grocery shopping, have your child help choose foods that stay within the budget. If your grocery bill goes over budget, have him or her help put foods back to where the grocery bill stays within the budget. This will also help your child learn the difference between needs and wants.

Finally, have your child also learn how to utilize the savings that he or she has from each allowance. Set up a savings account where that money can accumulate over time—and talk with your child about how and why you save for big items, like vacations or large purchases.

Are you looking for ways to help teach your child about money? Check out our First Volunteer Bank website today as a resource when teaching your children the importance of saving.