April is National Credit Union Youth Month, and it’s a great time for credit unions, like USAgencies, to focus on children in communities, and talk about some of the ways you can help set your child up for a financially successful future.
Here are some age appropriate suggestions for teaching children money management:
Ages 3 to 6 Years
Before children can handle money, they must first understand simple numbers. and know a penny from a nickel and a dime. Introduce coins by letting them handle money when buying small items.
At 5 or 6, give your child a dime and explain it will buy a piece of candy, or a toy, but not both. Money management involves choices and even at this age, when children spend, they need freedom of choice.
Ages 7 to 12 Years
When children begin to earn an allowance, help them use it wisely by putting part of it in a different envelopes or other containers for different purposes. Make sure sure to include one for savings.
Encourage your child to save by showing them some things that cost more than their allowance, and that they will have to save until they have enough.
Ages 13 to 18 Years
Teens experience managing money and making more decisions. Additional money beyond the normal allowance should not be given out generously. If you give them more, they may not learn the importance of planning, wise spending, and setting limits.
Share with your teenager the responsibility for spending part of the family’s budget. Have them prepare meals or do the weekly shopping; take them with you so they can learn how. Family budgeting will teach your teenager about living costs and values.
Ready to start a savings account for your child, or have some questions? We would love to help. USAgencies Credit Union offers many beneficial youth savings options. Give us a call at 503.275.0300 Option 2, or email at firstname.lastname@example.org.