How to Help Children Become Financially Savvy
April 2, 2020
Teaching children about money early in life can help them learn healthy financial habits that will last a lifetime. Research shows that children who learn how money works, make better financial decisions — whether it's budgeting to buy a toy they want or applying for student loans.
National Credit Union Youth Month
One of the ways MSU Federal Credit Union (MSUFCU) promotes learning money management skills is by celebrating National Credit Union Youth Month each April. This year’s theme of “Money Magic! Share, Spend, and Save at Your Credit Union” encourages children to develop healthy financial habits by making sharing, spending, and saving fun and exciting.
This year, MSUFCU will sponsor contests to encourage youth members to save. Money management strategies for sharing, spending, and saving are all important life lessons you can teach children in your life.
Start the Conversation
There are many ways to share money management strategies with children. Teaching them about sharing, spending, and saving is a good place to start. Understanding these financial habits will help them manage their finances as adults.
One way to get started is to set up three jars: labeled “sharing,’’ “spending,’’ and “saving.’’ When children receive money for birthdays or chores, have them divide the money equally among the jars. Sharing money can be donated to a charitable organization, spending money can be used to purchase items of their choice, and saving money can be deposited into savings accounts for future expenses. You may consider matching their savings as an extra incentive.
Youth Savings Accounts
Many financial institutions offer accounts for children to help them begin saving. MSUFCU offers youth accounts that provide the tools and resources to start the savings process and make learning financial basics fun and interactive. There are five youth account levels offered at MSUFCU:
* Sweet Pea (0-2 years)
* Dollar Dog (3-6 years)
* Cyber Saver (7-10 years)
* Money Club (11-13 years)
* CU Succeed (14-17 years)
After opening an account, each youth account member:
* Receives a free gift
* Can participate in contests designed to make learning about money fun
* Enjoys access to free gaming apps
All youth account members receive one virtual coin for every $10 deposited into their accounts, encouraging them to save. These coins can be redeemed for items in the Youth Store available in ComputerLine, MSUFCU’s online account management system.