by Shane Adair, Marketing Manager
Helping your kids develop good financial habits and a strong foundation of knowledge is the type of effort that can pay off decades into the future. With a broad understanding of things like the need for long-term savings, budgeting and responsible spending. How can you help your kids learn more about the best way to handle these crucial financial tasks? Use this practical advice as a place to start.
You can teach young children the basics of money and provide plenty of more advanced instruction to teens about things like responsible savings and spending. However, you shouldn't only tell them what to do with their money. To have lasting lessons and develop their own personal sense of financial principles, kids need to make their own decisions. That's true whether it means enjoying the results of a good choice or dealing with the fallout of a bad one.
As Inc. pointed out, only following the lead of parents can leave kids without the power to consider their financial situation and make their own decisions. When they make a mistake or bad decision with their own money, the consequences are relatively low and the experience can teach them something valuable to consider going forward. You should aim to provide guidance and advice, and step in when the stakes are high, but also give your kids an age-appropriate level of independence. Finding this balance means some careful consideration around your kid's personality and maturity, but it can provide some major benefits
Online and mobile banking tools offer insight and access to information that would be hard to imagine just a few decades ago. No longer do bank customers have to travel to an ATM or visit a branch in person to be sure about the amount of money in their account or review recent transactions. While many adults take such tools for granted, your kids may not understand the benefits of regularly reviewing their bank accounts. Encouraging them to check their accounts periodically will help develop good habits early on, allowing them to catch potential problems before they grow more severe and stay informed about their financial position.
To this end, make sure the bank you and your kids choose to work with has effective, secure online banking options. TAB Bank offers safe, dependable mobile and online banking tools for all personal accounts.
The concept of long-term savings - money that will sit in a savings account for years or decades - can be hard for kids and teens to truly grasp at first. Without many of their own significant, recurring financial responsibilities, it can take some time to learn the value of this good habit. You can both explain why long-term savings is so important and encourage your kids to set savings and spending goals that help them get used to this practice. Saving for something important, from a video game or concert tickets to their first car, helps bring about an understanding of both the discipline required to save money and the rewards that come with doing so.
Budgeting isn't a particularly fun activity for many people, but it's vitally important for responsible financial management. Lifehack suggested getting your kids involved in the process by having them take charge of tasks like managing the shopping list at the grocery store and finding the best bargains. As time goes on, you can have them take charge of the budgeting and shopping processes entirely, or involve them in managing a number of other household needs that require tracking spending and careful decision-making. By offering some instruction early on but also giving them room to act on their own - with clear goals set beforehand - you can give your kids some independence and authority, which reinforces financial literacy later on.
Building good financial habits means having dependable savings and checking accounts. get in touch with TAB Bank to learn more!
Looking to teach your child about building personal budgets? We have an ebook focused on just that. It is called, How to Build a Personal Budget, and can be accessed by clicking on the tile below.
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