It’s important that you think about your kid’s financial future as well as their health. It seems a parent often focuses on one area of growth throughout their days of raising children. It’s easy to get consumed with the basic life skills that you must teach a kid, but we often neglect to think about the bigger picture. Kids need to learn basic money management skills from a young age and having a bank account will help them learn this skill.
When your kid is old enough to understand basic money concepts, that is usually around age 5, you can set up a savings account for them. Teaching your kids about money during the younger years is more about saving versus spending. Take the time to work with your young kid to show them how money accumulates in their bank account and set up a reward system to encourage them to earn and save small amounts of cash during their childhood days.
When you set up a bank account for your kids, have them become a part of the process. Enabling your kids to take part in the creation of their own savings account will help them to put the pieces together fully when they start saving money. Take the time to show them how a savings account works, how interest accumulates and work to inspire them to see the reason having a bank account will help them in the future – a good way to do that is by using Homey app bank connections.
Kids need to learn how to bank properly early on in life because it’s a skill so few are taught to use. When kids grow up to be adults, they will need to have a bank account and know how to bank properly when it comes to earning their own money at a job. Each of us, as human beings, will ultimately end up needing a job in the future to survive in life. When you teach kids how to use a bank earlier on in life, they are more apt to know how to designated money properly and use their bank account to document their savings and spending habits.
Take time today to think about when you will be ready to start teaching kids about banking. It can start with you showing budget skills and use of your own bank account or starting a savings account for them at a young age. The options in how you teach kids about banking are up to you, but it’s important that you start teaching the concept of banking as soon as they are old enough to comprehend the use of money.
About the Author – Brandy Ellen Tanner is a Positive Lifestyle blogger who works from home while raising her 3 children. Read her other parenting articles at ParentInfluence.com.
Tags: allowance, bank account for kids, banking for kids, financial literacy, financial literacy for kids