Building Skills That Last a Lifetime
As parents, we all want our kids to grow up with the tools they need to succeed. That includes knowing how to handle money. Financial literacy isn’t something students always get in school, so it often falls to parents to guide the way. The good news? Teaching kids about money doesn’t have to be complicated. With everyday habits, conversations, and a little creativity, you can help your children build financial skills that will last a lifetime.
Start with the Basics: Saving and Spending
Even young children can learn the difference between saving and spending. Give them opportunities to make simple choices: do they spend their allowance now on a small treat, or save up for something bigger? A clear jar or envelope system works well for younger kids, as it lets them see money “grow” as they save.
As they get older, help them open a youth savings account. At your Ashland Community Federal Credit Union, for example, we provide a safe place for kids to save while teaching the value of keeping money local. Remember, unlike large, heavily advertised banks, your local credit union is built around people helping people, with profits going back into the community rather than to far-off shareholders. That’s something your kids need to know, because it is important.
Teach Real-World Skills
Financial literacy isn’t just about banking. It’s about…
- Budgeting: Show kids how to budget their birthday money or income from a part-time job. A simple rule like “save 20%, spend 70%, give 10%” can create lifelong habits.
- Comparison Shopping: Take them grocery shopping and compare prices per ounce, or show how buying in bulk can save money.
- Understanding Wants vs. Needs: Talk through purchases together. Why does your family choose certain things over others? Kids learn best by seeing your thought process.
Talk About Credit and Debt Early
Teenagers are often bombarded with credit card offers as soon as they turn 18. Preparing them ahead of time can prevent mistakes. Explain interest, the importance of paying bills on time, and how debt can grow quickly if not managed well. Show them that not all debt is bad, like a car loan or mortgage, but it should always be used wisely. And above all, teach them the difference between credit and debit cards. If you need help understanding that yourself, please let us know. It is important, and can save a lot of headaches in the future.
Encourage Earning Opportunities
There’s no better way to understand money than to earn it. Encourage your kids to take on age-appropriate jobs: babysitting, mowing lawns, tutoring, or working in the community. When they earn their own money, financial lessons like taxes, saving, and budgeting become very real.
Explore All the Options
One of the best lessons we can teach kids is that they have choices. They don’t have to rely only on the biggest bank with the flashiest ads. Local credit unions like your Ashland Community Federal Credit Union provide personalized service, competitive rates, and community support. When families choose local, they’re investing in their neighbors and strengthening their hometown. It’s an important perspective for young people to carry forward as they make financial decisions.
Build Healthy Habits for Life
The goal of financial literacy isn’t just to manage money. We need to build confidence and independence. By starting early and reinforcing positive habits, parents can give their children a head start on adulthood. Whether it’s saving, budgeting, borrowing wisely, or supporting local institutions, these lessons form a strong foundation for financial well-being.
At your Ashland Community Federal Credit Union, we believe financial literacy is a gift worth passing down. It helps kids grow into financially responsible adults who know how to make smart choices, and who understand the value of keeping money close to home, where it makes the biggest difference.
