Raising your kids to be money smart and teaching them how to save money for their future projects will set them for a brighter financial future. As a parent, you dream of your child reaching their goals and personal potential one day. Whether going to college, starting their own business, or marrying the person of their dreams, you want to help your children succeed in their ideal of a perfect life.
Your job as a parent is a labor of love and seems, at times, to be never-ending. It’s easy to get bogged down in your busy daily life and miss some of the critical lessons you need to teach your child. One of the best advantages you can give your child is the ability to make smart money moves.
Teaching your child to be money smart isn’t an afternoon project. It’s something you need to incorporate into your daily routine. The smart money skills your child learns from you can help them be more successful at every point in their lives.
How To Teach Your Children to Make Smart Money Moves
You have to teach your kids how to be smart at making money moves. Here are a few tips to get you started:
- Help them open a savings account: You want your child to develop the habit of saving money for specific purposes. This starts by opening a savings account.
- Develop savings goals: Whether it’s an expensive pair of tennis shoes or a laptop, help your child develop a set of savings goals. It needs to be attainable but still requires a few months to save the funds.
- Employ them: Depending on your child’s age, you want them to earn money independently, and they can’t always get a job bagging groceries. You can offer a weekly allowance if they complete all their chores daily or assign a reward value for specific jobs, such as washing the dishes or walking the dog.
- Charge interest: From an advance on their allowance to borrowing a dollar here and there, your kids tend to treat you like a bank. It’s time to act like one. If you charge your child a small amount of interest on money they borrow, they learn the value of it.
- Play games: If you have young children, teaching them the value of money can be challenging. However, who doesn’t enjoy a good game of Life or Monopoly Junior? Young kids can start learning about money and budgeting through play, even if it’s setting up a grocery store in their playroom.
As a parent, you want your kids to make smart money choices, but remember, there may be times when they don’t. It’s up to you to make these teachable moments. You can cultivate wise money choices in your children with patience and work.
Kids’ Savings Accounts
If you want to open savings account for your kids to teach them good savings habits, you may want to choose the right fit. For example, you may wish to open an account that doesn’t require a large initial deposit or frequent influxes to stay open if your kids don’t have an ample allowance. Here are a few savings account options that might be right for your children:
- Capital One Kids Savings Account: The Capital One savings account for kids doesn’t require a minimum balance so you can open it without a lot of upfront cash. It’s an excellent option for young savers.
- BECU Early Savers Account: This option will offer you one of the highest APY when it comes to savings accounts. Also, there isn’t a minimum balance making it great for kids.
- Alliant Credit Union Kids Savings Account: This credit union does require a small minimum balance of five dollars, which makes after a birthday or the holidays a great time to open one.
- Bank of America Minor Savings Account: This account does require a minimum balance, but it may be an option if you already bank with Bank of America.
Opening a savings account is a significant first step in teaching your child to be money smart from a young age.
