Kids and Money: How to Help Them Be Smart Investors in Their Future

Kids are savvier than ever these days, as most parents would agree. Born into a time when the internet is the norm and getting what you want requires just the click of a button, this future generation of leaders have advantages many folks never had.

Yet when it comes to understanding money, much less how to manage it. And this means that there is some catching up to do.

Like the day your four-year old said, “Just go to the bank, Daddy, and they will give you some money.”

If only! And while age four may seem too young to worry about, it’s actually a very good starting point. Good money habits are something many of us wish we had learned at an early age. Think about all the financial mishaps that could have been avoided or opportunities taken advantage of.

So, what are some smart ways to teach smart kids how to be good money managers?

Most kids are familiar with a piggy bank, right? So how about actually giving them one?  Something tangible so they can see the coins and bills as they start to mount up. The visual aspect helps the child to see how saving money can be creative and fun.  This is also a great time to teach them about giving. Whether it is giving to a charity or church or to someone that may need a little help (even a younger sibling).

Once they get into their teens, most kids have part-time or after school jobs. By this age, the ‘money thing’ has soaked in. If not, help your child find a job, without doing all the legwork, of course. It’s never too late to get them started.

First Basin Credit Union supports the education of financial responsibility for all ages.  That’s why we have a program specifically for the youth called the Kidz Club Account.  This helps children understand the concepts of saving, earning, and delayed gratification. It’s never too early (or too late) to help your kids understand the real value of saving money. They’ll thank you profusely when they’re grown.