Five Things You Should Teach Your Kids About Money
We all want our kids to grow up capable, confident, and ready for real life. That includes how they handle money. But unlike math or science, financial literacy doesn’t always come with a textbook or a teacher. That’s where parents — and your local credit union — make the biggest difference.
At Ashland Community Federal Credit Union, we believe money lessons start early and grow stronger when kids can practice what they learn. The truth is, kids don’t just learn money habits; they absorb them. Every time they see how we shop, save, give, or talk about money, they’re learning what it means to manage it. And we’re here to help make those lessons easier to teach.
Teaching kids about money isn’t just good parenting. It’s preparing them for a lifetime of confidence and independence. Here are some things you can do with your kids to help them learn about money. These lessons will last a lifetime!
Start With Saving
It begins with something simple: setting aside a little. Whether that’s a jar on a dresser or a Youth Savings Account, saving teaches patience, planning, and pride in progress. Kids love to see their balance grow, and that small spark of accomplishment builds a lifelong habit.
If you can, make it visual. Show them the balance or chart their savings together. Seeing money grow makes the concept real. A mobile app on your smartphone, like ours at your Ashland Community Federal Credit Union, is a great way to see progress over time.
Practice Responsible Spending
They’ll see you using plastic to purchase things, and as they get older, they’ll want to do the same. Before introducing a credit card, consider helping your child learn spending habits with a debit card tied to a checking account. It offers real-world experience without the risk of racking up debt.
With a debit card, they learn to make choices within limits, understanding that once the money’s gone, it’s gone. It helps them grasp budgeting, self-control, and the concept of “available funds,” which naturally builds the discipline needed later for managing credit.
A debit card creates a safe environment to practice responsibility — no interest, no minimum payments, just smart money management. And for parents, it’s a way to build confidence before handing over full financial independence.
Talk Early About Credit
Credit can be confusing, even for adults, but it doesn’t have to be. Start with the basics: credit isn’t free money; it’s borrowed money that has to be paid back, usually with interest. Explain how paying late costs more and how borrowing wisely builds trust over time.
These early talks help kids grow into adults who understand loans, rates, and repayment schedules. These lessons will pay off when it’s time for college, a car, or their first apartment.
Show the Power of Time
Here’s where the magic of compound interest comes in. Kids are naturally curious about how money “makes more money.” Use examples:
- Saving $10 a month can grow to hundreds by high school.
- The earlier they save, the more time their money has to grow.
Even small, consistent savings habits teach the most powerful financial lesson of all: Patience Pays.
Model What You Teach
The strongest financial lessons don’t come from lectures…they come from watching you. If you talk openly about saving for goals, giving to causes, or paying off a loan, your kids begin to understand what responsible money management looks like.
Make money conversations normal. Share both successes and mistakes. Let your kids see that managing money is about awareness and growth, not perfection. Most everyone has money issues along the road of life, and if you need help, reach out to us here at your Ashland Community Federal Credit Union. It’s good for you, and it teaches your kids that they don’t have to go through things alone.
Building Confidence, One Dollar at a Time
Financial literacy doesn’t happen overnight, but the earlier it starts, the more confident your kids will be when they step out on their own. Whether it’s saving for their first car, managing a debit card, or simply understanding where their money goes, every conversation matters.
And when you’re ready, our team at Ashland Community Federal Credit Union can help you find the right tools to keep those lessons going strong. Things like youth savings accounts, debit cards, mobile banking, and more are helpful when used properly and toward the right goals.
