Parenting Advice for Raising Money-Savvy Kids

Preparing your children for adulthood requires a lot of effort, particularly when it comes to financial wellness. As they grow older, they’ll need more than just a piggy bank to succeed—they'll look to you for advice on credit cards, loans and money management. Start early with things like budgeting, allowances and special bank accounts to set them on the right path. Here's a primer on how to teach kids about money.

Keep spare change in a clear jar—Step number one is to show kids how saving works. Keep it simple—a clear jar and some spare change should do it. Keep it out where even the youngest set of eyes can watch it grow!  

Give them their own savings account—While kids are young, open up a kids savings account in their name. Link it to your own account for easy monitoring and make regular deposits (from birthday money or allowances). Some financial institutions let you open an account for as little as one dollar. As they continue to make deposits, help them learn how to save for something they want.  

Set a good example—Kid’s notice everything! Stick to your own budget—make responsible financial decisions and teach your kids along the way. This helps lay a foundation of understanding that will stay with them their entire life. As you carry out your normal financial business, stop and consider if there’s a lesson you could pass on.  

Discuss wants vs. needs—When it comes to wanting things, kids are experts. Discuss the difference between “want” and “need” and explain why it’s important to consider both in our choices. Your kid may want a new bike—just like Alex’s across the street—but do they need one? If they are due for an upgrade, use it as an opportunity to teach them about earning and saving money. Assign them a few chores to build their bank account so they can buy the item themselves.  

Teach them about plastic—In today's world, most purchases are handled with plastic. It's good for convenience but can also lead to dangerous spending habits. Help curb those habits by starting your older kids with a Mountain America Credit Union's MyExpress^SM debit card. It allows you to deposit money into the account as needed and use it wherever Visa debit cards are accepted.

Let them monitor their own finances—Once they’re old enough to understand the ins and outs of a bank account, give kids access to a money manager that will let them track their long-term savings goals. Users can monitor their financial accounts, visualize their spending habits, track their net worth month-to-month and more. A good financial tracking program can follow them from their first savings account to their first home loan and beyond.