Tips for Teaching Your Children About Finances
Parents take a number of steps to protect the safety of their children, such as installing child-proof locks, giving them vitamins and nutritious foods, and taking them to the doctor for immunizations and checkups. But many parents tend to forget about another important factor—their child’s financial safety. Teaching your child about money at an early age is a great way to improve his or her financial future. Keep reading for tips on educating your child about finances.
Provide an Allowance
Many parents provide their children with a weekly or monthly allowance . This can be an effective teaching tool as it allows you to teach your child the value of a dollar and encourages them to spend the money wisely. Having your child perform certain duties such as dusting, taking out the trash, or vacuuming in order to receive their allowance will also help your child understand that money is not simply given away, but must be earned.
Use Everyday Situations as Educational Opportunities
Using everyday situations as educational opportunities is a great way to teach your child about money. For example, a trip to the supermarket can give you the chance to talk to your child about supply and demand and the importance of assessing prices, while a visit to the ATM gives you the chance to explain to your child how banks and credit unions operate.
Open Up a Savings Account
You may consider having your child open up a savings account with your local credit union so that any money obtained as gifts or as allowance can grow into a nice little nest egg. This will also help your child understand how savings accounts and interest rates work.
Here at the GCS Credit Union in O’Fallon, Illinois, we are devoted to providing the financial services that you and your family members need. Get your family on the road to financial security and enjoy the benefits of working with a credit union by calling (618) 797-7993 today!