5 Things you can do to help ensure your child’s financial future
When it comes to preparing your child for the future, financial literacy is one of the most important skills you can teach them. Unfortunately, many parents aren’t comfortable talking about the topic, and many of our public schools have dropped financial literacy programs from their curriculum.
Here at Nuvision, we are committed to helping the next generation succeed; from our Annual High school Essay Scholarship program to our blog that features tips and articles from industry experts we want to help you encourage your children to be responsible with their money.
Here are a couple of tips that can make a big difference in your young one's lives.
Teach your children where money comes from
It’s never too early to teach your children the value of a dollar; it’s also never too early to teach them where their money comes from – from hard work. Once your children are old enough to start doing chores around the house, adding an allowance program for the work that they do that goes above and beyond their normal household responsibilities is a good way to start teaching them the importance of working for their money.
Teach them how to Save with a Clear Glass Jar!
A clear glass jar is a great way to help teach younger children how to save in a fun, visual way that will help them see their savings grow. Every time they deposit their allowance into the jar, make a big deal about what they are doing and take time to explain the importance of savings and how they will be able to save for the things they really want.
Go beyond simple savings and teach them how to Budget
It may sound weird, but don’t forget to teach your children what to do with their money. A great way to teach them about budgeting is to set up four separate jars. When your child receives their allowance, make them split the money up into four different jars.
- 10% for charity.
- 30% for quick cash and things they want to buy now.
- 30% for savings over the next year – this would be for larger purchases like video games, electronics, etc.
- 30% for long-term savings – college, first car, etc.
Don’t be afraid to discuss how much things cost
When it comes to finances, many parents try to keep their children in the dark. While you don’t have to discuss every detail of your personal finances, it is a good idea to tell them how much stuff costs. Tell them how much that new toy costs, and then explain to them how long it will take them to save for that item. When the time comes to buy that special toy they’ve been wanting, let them pull the money out of their jar and let them pay the cashier. The more familiar they are with the idea of savings and paying for things with their own money, the better they will understand the concept when it counts.
Once they are old enough, give them the responsibility of maintaining a bank account.
As part of our commitment to teaching the next generation the value of financial literacy, Nuvision offers a number of age-appropriate accounts including savings accounts and a youth checking account. Opening a simple savings account and then a checking account as they move into their teenage years will help your child learn how to manage their finances in a safe, responsible way.