Financial Tips to Teach Your Kids
No matter what your financial situation, we think it is important to teach children about money and financial responsibility at an early age in order to give them the knowledge they will need to have a secure future for themselves.
Where Does Money Come From: A major lesson that is important for everyone to learn young is that money is earned. Teaching children this will hopefully instill in them a good work ethic as they grow. This is where the old-fashioned allowance comes into play. Paying your children for chores they do around the house will teach them the importance of earning money. Some experts even recommend giving your child a little extra allowance for tasks they do related to what career they want when they grow up. For example, walking the dog if they want to work with animals, or helping fix things around the house if they dream of becoming an architect or contractor.
How to Budget: Once your children are old enough to earn an allowance, teach them about how to budget it. Lessons like what you should spend and what you should save for are important to learn for long-term financial success There are different ways to go about this. Some parents may give their children free-reign to spend their allowance, and then have them understand how to budget based off this learning experience.
Other parents will walk kids through the budgeting process; what they really want to buy now, like a new pair of sneakers, and what bigger purchases they should save for, like a new bicycle for their next summer vacation. Keeping their earnings in one place like a jar or piggy bank, and practicing writing a physical budget will help them visualize the scenarios.
Become a Cub: LNB wants to help you in teaching your child all about financial stability and success. With our Lyons Cub Savings Account, you can help them start their very own bank account with as little as $.01 deposit. There are no maintenance fees, and each account earns interest to show kids the importance of saving. Available for children 18 years and younger.
Come into one of our branches with your child to open their Lyons Cub Account, and to get more information about how to ready them for their financial future.