DOLLARS & SENSE
24 Bham Family August 2020
FINANCE
Teach children the basics about money
BY LAUREN DOWDLE
It’s never too early for parents to start educating their children
Federal Credit Union explains.
Q: What strategies can parents use to teach their children
A: First, make sure your children understand where money
Kyle McDougal, America’s First
comes from and that it must be earned. It’s vital for kids to
Federal Credit Union
understand money is not just a magic resource that appears out
of thin air, but rather, it requires work to obtain. Give your child
the ability to earn their allowance.
Next, have your child set an attainable savings goal for
something he or she wants, such as a $30 toy. Encourage your
children to avoid impulse buying. When your child does make a
purchase, help them withdraw the money from their savings jar
or account, then go to the store and physically hand over their
money for the item.
Once your child has a grasp on saving and spending, encourage
them to start setting some of their money aside for giving or
sharing. For older kids, let them participate in family budget talks.
Help them understand why you buy one brand over another or
compound interest works and encourage them to set longer term
goals. Show them how to invest and encourage them to start as
soon as possible. Additionally, let your teenager manage his or
her own budget and bank account. Make sure they understand
how both credit and debt work.
Q:
A: We all want our children to have the best lives possible,
and building smart money habits is a stable foundation that will
doesn’t know can hurt him or her in the long run. Like any other skill, the sooner your child learns and
begins practicing good money habits, the better off he or she will be moving forward.
Q:
A: In short:
ACCOUNT PERKS
The AmFirst Kids First Club
savings account is for children
13 and younger and comes
with a membership card, brand
goodies, birthday surprise each
year, and $5 deposit when they
present a report card with all As
and Bs. Teens ages 14 to 18
can join their AmFirst LevelUp
checking and savings accounts,
both of which help teach teens
how to manage their money.
Kyle McDougal is the brand
First Federal Credit Union.
He is a marketing leader and
brand manager with 18 years
of experience in a variety of
marketing and advertising roles.