Money experiences to teach your kids

Our friends at Balance Financial Fitness provide some helpful opportunities for teaching your kids financial lessons.

If you’ve been meaning to talk to your kids about money, April is the perfect time to start. In addition to Credit Union Youth Month, April 12th, 2019 marks National Teach Children to Save Day.

This special day was created by the American Bankers Association to promote financial literacy among children. In the spirit of the occasion, here are three real-world experiences that parents can use to introduce kids to personal finance.

Have Your Children Make Purchases

Buying something is maybe the most direct way to understand how money works. That makes it a great opportunity for your children. Try including them the next time you make a purchase. 

Whether it’s at the supermarket or movie theater, give your kids cash to hand to the cashier, and then have them collect and count the change. (Note: This works best for cash purchases. Using a card may be a little too abstract.)

Lesson: Money is used in exchange for goods and services.

Open a Savings Account With Them

There’s no better way to explain saving money to a child than to open an account in their name for this specific purpose. It might be tempting to save time and do it online, but make it tangible by taking your child to your financial institution in person. Show them the physical building, point out the ATM, and have them meet the people behind the counter. Reinforce the roles that financial institutions play in managing your money. After the account is open, make a plan together for making regular contributions to it. 

Lesson: While piggy banks are cute, savings accounts are the best option for stashing your cash.

Inspire Them to Start a Business

There’s a reason why lemonade stands have stood the test of time. These micro businesses represent many children’s first exposure to earning money. If lemonade’s not their thing, encourage them to offer pet sitting or yard work to your neighbors. 

Lesson: Money is earned through work.

Save Smarter

Learn more about the benefits of savings accounts for kids on our Youth Accounts page. Call 315-735-8571 to discuss any questions you may have or make an appointment with one of our friendly and knowledgeable representatives today. Simply click on the button below, select the “New Accounts” service from the menu and choose “Youth Account”.

Source: Balance Financial Fitness March 2019

When is the best time to open one for your child?

How financially savvy are your kids? 

Depending on your answer, our friends at Balance Financial Fitness offer some great advice.

According to a recent survey, only 5% of adults received any kind of financial education in school. It is a scary statistic, and may partially explain consumers’ record-high credit card and student loan debt.

If you want to equip your kids with the tools to be financially secure adults, a good place to start is with a savings and/or checking account. Once they see money going in and coming out, it can drive home a lesson about money management.

Wondering if they can handle the responsibility? 

Savings Accounts

Most kids can typically grasp the concept of a savings account early in their development. Here’s how to know if your children are ready to use one:

• They’re curious about money - If your child expresses a genuine interest in coins, shopping, or anything related to money, this can be a good segue into a savings lesson: financial institutions allow you to put money aside until you really need it.

• Their piggy bank is overflowing - If your kids have a lot of change in their piggy bank, watch out. It may disappear before your eyes. Take this opportunity to teach them that if they save some of their money in an account, it can earn interest or dividends over time.

• They have a savings goal - If your children are saving up for something big, this is the perfect time to introduce a savings account. They can make a deposit into the account so they will not be tempted to spend all of their cash.

Checking Accounts

Checking accounts tend to be better suited to older kids who have had more exposure to money. Here are some signs that your kids could benefit from a checking account:

• They’re responsible - No matter how responsible you are, it can be tempting to withdraw more cash than you should. You might wait to open an account with your children until they demonstrate responsibility in other areas, such as getting a driver’s license or maintaining a part-time job. 

• All their cash is stuffed into their wallet - The wallet-as-checking-account is dangerous for several reasons. Not only can cash easily get lost, it’s hard to track your purchases. By contrast, an account statement lets you view all of your spending and withdrawal activity, which can be handy for budgeting and a great teaching tool.

If you’re eager to introduce your children to the world of personal finance, checking and savings accounts are a good place to start. Just watch for the signs, and start when they’re ready.

Save Smarter

Learn about the different types of Youth Accounts, and their benefits, on our Youth Accounts page. Call 315-735-8571 to discuss any questions you may have or make an appointment with one of our friendly and knowledgeable representatives today. Simply click on the button below, select the “New Accounts” service from the menu and choose “Youth Account”.

Source: Balance Financial Fitness March 2019

Start Your Child Learning About Money

Play Banzai Junior

Banzai Junior is an interactive money game made especially for kids ages 8-12. Players simulate running a lemonade stand to make money and save for something they want. In this case, it’s a new bike or hoverboard. They practice making basic business decisions, paying expenses, borrowing money, and saving, sometimes without even realizing they’re doing it! To them it’s just a fun game. To you, they’re learning important money life skills. By playing the game and simulating the results of real-world decisions, they learn about how to spend and save properly, and set goals for themselves. 

To get started, you’ll simply need to sign in with an email, and create a unique password. Your child can go through as many times as they like. If they need to stop before they are finished, the program will allow them to jump right back in.

This is a fun way to share financial advice and lessons with your kids, and help them learn values to Live Smarter throughout their lives.

Kids can get started here:

Banzai Junior is part of our full Banzai Financial Education Program, consisting of FREE online financial literacy modules, providing education directly to our Members, to members of our community, and to local schools and teachers for use in their classrooms. They are all available online in self-paced, age-appropriate, fun and interactive modules. We believe that learning more about money management can help us all Live Smarter.
 

Learn About Managing Your Money, Borrowing, and Understanding Credit

Play Banzai Plus

Banzai Plus is an interactive financial management game specifically designed for young adults ages 18 and up. Players simulate the home-buying process by allocating their income over several paychecks to different budgeted needs, paying unexpected bills, saving for a mortgage down payment, and learning about credit scores.

You receive a lifelike credit score that responds to your decisions in the game, so you can understand the consequences or positive impact of your financial decisions on your credit score, and how that can impact your borrowing. This is a great place to simulate the experience before needing to do this with real money. The module allows you to try as many times as you like, making different choices and seeing how they affect your outcomes.

To get started, simply sign in with your email, and create a unique password. You can go through as many times as you like. If you need to stop before you are finished, the program will allow you to jump right back in.

We can all learn more about managing our money, and Banzai Plus is a great place to begin. Start on your path to making educated financial choices, and Live Smarter.

Get started here:

Banzai Plus is part of our full Banzai Financial Education Program, consisting of FREE online financial literacy modules, providing education directly to our Members, to members of our community, and to local schools and teachers for use in their classrooms. They are all available online in self-paced, age-appropriate, fun and interactive modules. We believe that learning more about money management can help us all Live Smarter.
 

Learn About Money and Making Financial Choices

Play Banzai Teen

Banzai Teen is an interactive money game specifically designed for teens ages 13-18. Players simulate saving for college with a full-time job, living on their own, and handling important everyday decisions for living expenses, transportation, utilities, and more. Your choices affect the outcomes, in a safe space to try “what-ifs” with your money decisions. You can try as many times as you want, and find different ways to make things work before encountering these choices in the real world. 

To get started, simply sign in with your email, and create a unique password. You can go through as many modules as many times as you like. If you need to stop before you are finished, the program will allow you to jump right back in.

Gain skills while learning some basics about managing money, to Live Smarter.

Get started here:

Banzai Teen is part of our full Banzai Financial Education Program, consisting of FREE online financial literacy modules, providing education directly to our Members, to members of our community, and to local schools and teachers for use in their classrooms. They are all available online in self-paced, age-appropriate, fun and interactive modules. We believe that learning more about money management can help us all Live Smarter.