As kids head back to school, it’s the perfect time to reset routines, and that includes building healthy financial habits. While you’re checking off school supply lists, it’s also a good opportunity to start or revisit conversations about money at home.
Whether your child is entering kindergarten, middle school, or even high school, learning how to save, spend, and set goals can be just as important as reading and math. Saving money can be tough for kids and parents alike. Luckily, children have time on their side. And with a little diligence, you may be able to instill good habits today that could last a lifetime.
Here are a few ways to get started:
- Get your kids familiar with money, the old-fashioned green paper kind. It’s much easier for kids to understand a concept with something tangible. Introduce them to what certain coins and bills are worth, and then have them pay for an ice cream cone or other treat. You provide the cash, and they decide what bills to use and get change. When they see the money coming in, or going out, it all becomes more real.
- Play with them. Kids learn best through play, so consider games like Monopoly, where they have to use money, do math, and make mistakes where the impact isn’t real. For younger kids, play store where there is a “cash register.”
- Give an allowance. Discuss beforehand how much they will get and how often. Determine how much they will set aside for savings. Some families opt for a system that divides it into spending, savings, and sharing categories, the latter being for charity. Help them set up their system for divvying things up, even if it’s just envelopes or jars.
- Let them earn extra money. Kids love an opportunity to earn extra cash, especially if they have a goal in mind. Help them set up a lemonade stand, or maybe they can sell a few items at the neighborhood garage sale. Brainstorm with them. They may suddenly develop an interest in shoveling neighbors’ walks during the next snowstorm.
- Set goals. Do your kids have their eye on something special? Have them save up and buy it themselves. First, help them figure out how long it will take to set aside the money and discuss if it is a reasonable goal. If you are feeling generous, maybe match savings up to a certain dollar amount. Setting a goal and reaching it will teach them the struggle and satisfaction of reaching a financial goal.
- Bank together. Go to your local bank or credit union to set up a savings account and help them make the deposits. Savings accounts are low risk with long-term rewards. Some places, like OnPoint Community Credit Union, make the process easy with convenient locations and coin-counting machines in some stores that kids use themselves. Plus, the OnPoint Savers account for those 17 and younger is uniquely appealing. With a minimum opening deposit of $25, OnPoint will deposit an additional $55. Additionally, they provide a high interest rate on the first $500 in the account.
Don’t let the conversations stop there. Keep talking about money because each year brings a new opportunity for understanding and growth. If you have questions about how to set up a savings account or want to open one for your child, visit your nearest OnPoint branch. Our team is here to help make saving simple and fun for the whole family.
