Tag Archives: kids and money

The Money Talk with Kids

National Credit Union Youth Month is here, keeping your kids educated about saving and spending money is crucial for their financial success. Are you looking for ideas to start the money talk? We’ve got some conversation starters for you!

Saving Smart

For the responsible adult who thinks about being prepared for the future, savings are a fixed expense that is built into the monthly budget just like car payments and insurance. For most people, though, this habit does not come naturally. It needs to be acquired and practiced. Teach your kids those saving smarts now when they’re young to help make it a lifetime habit they’ve already mastered by the time they hit their 20s.

Give your kids a clear understanding of why saving is crucial to financial wellness and how to make it happen. Here are some points to cover:

  • Why putting money aside each month is crucial
  • How interest and compound interest work
  • Long-term vs. short-term saving
  • Reasons to save

Conversation starters (For kids under age 9):

  • Let’s say you’ve only got $15 and you want to buy a drone that costs $65. You get $5 a week as your allowance. How can you buy that drone?
  • When did you wait for something and find that it was more enjoyable because you waited for it?
  • Can you think of some things that Mom or Dad saves up for?
  • If you earn 10 cents for every dollar you save, how much money will you earn by putting away $5?

Conversation starters (For kids over age 9):

  • Are you saving up for anything important?
  • Can you think of some things that Mom or Dad saves up for?
  • Have you ever had to pay for something unexpected? How did you come up with the money?
  • Some things we save for are short-term goals, and others are long-term goals. Can you name some of each kind of goal? How will we save differently for each kind?
  • Do you think it’s smart for Mom and Dad to keep money they’re saving under the mattress? Why or why not?

Working It Out

One of the most fundamental financial lessons your kids are going to have to learn is about how you work for your money.

Do your kids understand that every time you pull out a wad of bills or swipe a card to pay for a purchase, that money is directly linked to time you put in at the office? Do they realize all of your money is earned through hard work?

Here’s how to make sure your kids — at any age level — understand this concept.

Goal: Teach your children that money for purchases, whether it’s paid through cash or a card, is earned through hard work. Here are some points to cover:

  • Money is earned through work.
  • Every dollar spent is time you spend working.
  • Any method used to pay for purchases comes from the same source.

Conversation starters (For kids under age 9):

  • What do you think mom/dad does all day at their job?
  • We work to do what our bosses want and need. How do you think our bosses reward us?
  • When we spend money for pizza, groceries, toys or movies, where do you think that money is coming from?
  • This is mom/dad’s paycheck from work. When we give it to USAgencies Credit Union, we have money to spend. Why do you think we put the paycheck in our account at USAgencies Credit Union?
  • When I swipe my credit/debit card, how does that pay the store owner? Where is the money coming from?

Conversation starters (For kids over age 9):

  • Why do you think people work?
  • Do you think people who work harder for their money spend it more carefully?
  • Would you still want that (article of clothing/toy/gadget) if you had to work for it?
  • If you had the choice to work 16-hour days for double the salary of an 8-hour day, would you take it? Why or why not?

We’ve also got a few fun activity pages for your kids to complete.

Youth_activity_pages preview
Download printable worksheets

Youth_activity_pages preview
Download printable worksheets

Youth_activity_pages3
Download printable worksheets


Do you encourage your kids to save money? How do they spend their allowance, chore money and money they earn from odd jobs as soon as they have it?

Connect with us to help get your children ready for their first savings or checking account to establish healthy financial habits. Call us at 503-275-0300 Option 4, or email info@usacu.org. Everyone deserves a better banking experience. Get it here.

Kids and Learning the Value of Money

“Children as young as three to five years of age are developing the basic skills and attitudes that lay the foundation for later financial well-being.” – Consumer Financial Protection Bureau
These skills are known as “executive function” and they lay the groundwork for future decision-making by building our capacity to plan for the future, focus attention, remember information, and manage multiple tasks. Although this sounds complicated, parents can play a pivotal role in facilitating their child’s development by talking with their children about basic money management ideas like earning, saving, planning, and spending that all rely on the elements of executive function.Parents can reinforce these ideas through play as well and “on the job training” so to speak, when they are out and about with their children in the neighborhood and/or the store.Here are some tips to get you started on the path of teaching your child smart money handling.

EARN

Share with your child that the way you get money is by working to earn it.

Describe your job to your child or, as you are out in the neighborhood or community, point out people who are working different jobs and describe what they do.

  • Point out people working like the bus driver, police officer, cashier, and your child’s teacher or caregiver.
  • Share that these individuals earn money for the work they do which helps them to pay for items like homes, food, clothes, etc.
  • Play pretend with your child and ask him or her to imagine working one of these jobs. What would the job be? What would the day-to-day work be? What would the money earned go toward?

SAVE

Once we get money it is important to think about putting some aside for the things we want in the future.

  • Start a piggy bank or saving jar with your child, have them help you decorate and label it, and put is someplace out in plain sight.
  • Practice sorting change with your child so that they start learning the names and values of coins and cash. Have them sort into categories of things you need to buy every day and things you want to save for in the future i.e. food, housing (now), vacation, large purchase (later).
  • When they receive money ask them to put all or part of it in the piggy bank or jar and have them tell you what they are saving for.

PLAN

It helps to pay attention, remember, and adjust.

  • Games help build skills that might not seem related to money management – but they form an important foundation.
  • Playing musical chairs or Simon Says help your child pay attention and make quick decisions.
  • Guessing games like 20 Questions or I Spy can help your child exercise his or her memory and think creatively.

SHOP

You need money to buy things and spending money always means making a choice.

  • As recommended above, help your child sort out change into their different denominations and help them to identify different coins and their value.
  • Encourage them to put some of them away in their piggy bank or savings jar and then talk about what they would like to spend the rest on.
  • When you are at the store or in the neighborhood point out to your child items that cost money, such as food, clothes, pets, cars, etc.
  • Talk about how your family decides what to buy and what to pass up and let him or her practice, too.
  • Give your child a few dollars and let him or her choose what to buy with what they have.

In collaboration with Money Smart Week


Ready to get your child a savings account? Connect with a Member Relationship Specialist today to get started at 503-275-0300 Option 3 or info@usacu.org. You and your child can also visit our branch located at 95 SW Taylor St., Portland, OR 97204. We cannot wait to see you!