Discover Resources On How To Educate Savings to Kids

It's Credit Union Youth Month and we are listing several resources for educating finances to children and young teens. As we have touched on this topic in the past, we find out that many tips we share are ones that are not taught in school. Most parents understand that they should teach their kids about money, but where to start can be a challenge. Take advantage of the various resources we listed for teaching financial education to children and young kids. 

Let's first take a look at what financial concepts are best for children within a certain age. 

Ages 3-5: Even though they might not fully grasp the concept of money yet, it's essential to introduce them to the idea of transactions. Take them along for grocery trips and let them see how money is used to pay for items. Using cash can make it more understandable for them.

An important lesson at this age is understanding that buying something means giving up money. Give them a few dollars to spend and let them hand it over themselves for a purchase.

Ages 6-10: You can begin to introduce a small allowance. Consider tying money to completing small chores such as folding the laundry or taking the trash to the curb. Capitalize on this by allowing your child to take a few dollars to the store and choose between two items. Children can learn to differentiate between wants and needs. Explain coupons and sales and how to make the purchase decision.

Talk to your child about having a safe place to keep money. Next time you visit U1, bring them along and open a U1 Young Savers account, designed specifically for children aged 12 and younger. Upon opening the account, kids will receive a coin book. Once they've filled the book with coins, they can deposit it into their account and receive an exciting gift that promotes future savings!

Ages 11-13: Introduce budgeting by involving them in creating a budget for groceries or back-to-school shopping. Ask for their input while shopping to stay within the budget. Teach them comparison shopping skills by comparing prices and quality between different brands. Reinforce how a budget can help them achieve their goals and make better financial decisions. Start incorporating goal-oriented saving and long-term wants. Work with them to break down their budget into three categories: saving, spending, and donating. Include children in family discussions about budgeting. Bring them into the conversation on the family vacation or outings. It shows them how money can be leveraged to get things they want.

Ages 14-18:  At this age, you want to let teens experience the independence of making and having their own money through a job. Have your teen self-fund their wants, such as make-up, clothing, and video games. Start discussing future career paths and the financial responsibilities that come with them. Explain deductions like taxes and insurance premiums. Consider opening a U1 Checking or a U1 Teen Savings account to teach them financial management. 

Discuss options for paying for college, including scholarships, financial aid, and part-time jobs. Encourage them to research different career paths and the costs associated with higher education. Help them understand the impact of student loan debt on their future finances.

Giving your children the knowledge and help to reach a savings goal is a life lesson they will carry with them throughout their adult lives. Getting them financially established is one of the best gifts you can provide. Please utilize the many resources below on teaching the youth about financial success. Happy Credit Union Youth Month!

• Empowering Youth to Save:
  This infographic by the NCUA (National Credit Union Administration) details tips, strategies and sources for successful approaches to youth savings and financial education.
   
• Share these research-backed money skills: 
  The Consumer Financial Protection Bureau offers tips on age-appropriate money milestones.
   
• Explore financial literacy for all abilities: 
  This guide from Columbia University also includes money management tips for kids with autism.
   
• Make it a game:
  Play the NCUA’s World of Cents game with your kids as a fun and practical way to teach them about money.
   
• 15 ways to teach kids about money:
  Dave Ramsey breaks down teaching kids about money in certain age brackets

• Higher dividend rates: U1 offers competitive dividends on our savings accounts compared to traditional banks. This can help your child earn more money on their savings.
   
• No fees: Unlike some banks, U1 does not charge monthly fees for savings accounts, which can save your child money in the long run.
   
• Financial education: U1 offers savings tips to help your children learn about money management, budgeting, and saving – all in a fun way! 
   
• Account ownership: Opening a Young Savers account at U1 can help your child establish a financial identity and become more responsible with their money.
   
• Convenience: The Young Savers account can be easily accessed online or through mobile banking, making it easy for parents to monitor their child's account activity and for children to manage their money.