Money Management for Kids
Learn ways to teach your kids good spending habits
When it comes to teaching your kids good spending habits, it's important to start early. You want to provide for your children and keep them happy, but it's important to note how your spending habits could impact their future money management and your bottom line. Everything from buying that candy bar at the grocery store to choosing brand name items can influence how your kids view money. Check out these spending tips that will help you save money and teach good money management to your kids.
- Know when to say no. It's not so bad to indulge your kids once in a while, is it? That treat in the check-out aisle or a new toy once in a while is fine. But if you make a pattern of giving in to those impulse requests, you're creating an expectation that could cost much more than a snack. Choose to say no and open a savings account to set aside money for a bigger goal. It can be anything from a family vacation, college or a new pet to something as simple as a larger purchase your child wants like a new bike, TV or cell phone. Explaining where the money is going and why you have to say no may help them understand. It also sets them on a good path when it comes to their own spending habits.
- Choose generics instead of name brands. Buying store brands is a great way to save money, and if your kids think there's a difference, have them try both. Showing them the brand and generic food tastes the same and explaining the cost difference will help reduce arguments in the grocery store. When it comes to clothes, let them know what you'll pay and that they can pay the difference if it's that important to them. They'll quickly learn what products are important enough for them to spend their money on.
- Talk to your teens about your financial plans. When your kids are old enough, sit them down and talk through your current expenses and plans for the future. Help them understand that you can't always buy the newest gadget because you're saving for their education and your retirement. Sharing your personal finances with them can help show them that some expenses should take priority over keeping up with the latest trends.
- Set limits on larger expenses. As your kids grow up and face college and wedding expenses, it's going to be even harder to say no. But if you can't afford their dream school and the perfect wedding would postpone your retirement, setting realistic limits on your contributions is a wise choice. Let your children know up front how much you can afford to spend on college or the wedding. This is not only a good money management lesson for your kids, but it helps you plan for your future. Your kids will learn how to stay within a budget or manage any additional debt, and they'll learn the importance of living within their means.
Open a savings account at Citizens Bank
The key to successful money management for your kids is communication. It's important to look at expenses as an opportunity to teach them even when they are young. Explaining why you have to say no and showing them where the savings go will help them develop positive spending habits as adults. You can even use the money you save to open a savings account at Citizens Bank and help them save for college, a wedding or to buy a home. Learn more about savings accounts from a representative at 1-877-360-2472.