Money Talks: Essential Lessons for Teaching Kids Financial Literacy
November 6, 2024
Teaching your children about money and financial literacy can seem intimidating and it may be hard for you to figure out when and where to start. It’s important to remember that the earlier you teach your children to build healthy financial habits, the better off they will be with their finances in the future. As you talk to your children about various financial topics, they begin to understand the value of money and the responsibilities that come with it. Check out the following key financial concepts and resources for fun activities that you can do with children to begin setting those financial literacy building blocks in their lives.
Key Concepts:
- Earning Money: The first step in financial literacy for kids is understanding that you earn money by working. Whether through tasks, chores, or small jobs, let their “work” be something they actively choose because that helps to keep them motivated.
- Saving and spending: Explain to your kids why it is essential to save money. You can talk about saving for a rainy-day, vacation, or to buy something they really want, such as toys, video games, clothes, shoes, etc. Encourage them to have a saving routine, such as 10% of their allowance and slowly increase the percentage saved as they get older. Give them a piggy bank or jar where they can physically see their money growing, making saving both fun and rewarding.
- Understanding needs from wants: Helping kids learn the difference between needs and wants is a crucial building block in financial literacy. Explain that needs, like food and water, are essential, while wants, though they bring happiness, aren’t always necessary. Understanding this balance teaches them that needs take priority, but saving for a few wants along the way can be part of a healthy financial plan.
The next step: TVFCU Youth Savings Account
As your child begins to understand these financial topics and is ready to move on to the next step, we recommend opening a TVFCU Youth Savings account. This account is available for children under 19 years of age. There is no monthly service charge, plus competitive dividends are paid on the entire balance. Having an account with TVFCU or another local credit union is a great way to introduce your child to modernized banking ahead of the curve! Check the related links section below for our contact details and information on Youth Savings accounts.
Resources for fun activities:
There are plenty of financial literacy activities on the internet, here are some of our favorites:
Financial Soccer online game: https://www.financialsoccer.com/en
Consumer Financial Protection Bureau (CFPB) provides plenty of teacher lesson plans that can also be used for individual children: https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/teach/activities/
TVFCU freely shares Bizkids videos explaining different financial topics for kids: https://www.tvfcu.com/benefits-education/financial-education-videos/Bizkids.html
Related Links:
Youth Savings account information: https://www.tvfcu.com/personal/personal-savings/youth-savings-accounts.html
TVFCU contact details: https://www.tvfcu.com/about-us/contact-us.html