Kids need to train their money skills, too
We’re big fans of student athletes. Time spent on the field, the court, the track or the mat does more than ensure young people become strong and healthy. It also teaches them skills that will help them become successful adults, such as teamwork, perseverance, self-discipline, communication, and leadership.
Parents encourage young athletes to practice because they know it will improve their skills when they compete. Another important skill that every young person needs is money management skills. Kids learn most of what they know about money at home, and that can include both good and bad habits. By teaching your son or daughter about money and how to make the most of it, you’ll improve their chances of growing into financially secure adults.
One of the most important money lessons kids need to learn is that they can only spend a dollar once. Helping them understand that buying one thing means they can’t buy another will encourage them to make wise choices. That’s particularly true when it comes to impulse purchases.
A related lesson that’s important is the concept of saving for a rainy day. Putting some money aside a little at a time means more will be available when they have to buy something important. Show them how dividends work, and explain the power of compound interest. Getting in the habit of saving early in life is one of the best recipes for financial health down the road.
Many parents don’t want their kids to have to work during school, but taking on a part-time job is a great way to learn responsibility and the value of both time and money. Whether it’s mowing lawns or working at a fast-food restaurant, part-time work helps young people understand the concept that money is something we earn. They’ll also learn answers to questions like “Who’s FICA and why is it taking part of my paycheck?” Encourage your kids to save at least part of their pay and give part of it to a cause that’s important to them.
One thing parents can do to encourage good financial habits is set up a special Minor Account. We designed it especially for kids under age 18, and you can open the account with as little as $50 (or just $5 when there’s direct deposit). The account has no monthly fee and can earn dividends. Plus, your son or daughter can receive a no-fee debit card. We have a variety of free affinity debit card options available as well which support and giveback to many local schools! Click here for more information: https://www.imcu.com/personal/checking or stop by any of our locations to open their account.