Teaching kids about banking and finance is an important step that will help them make better decisions with their money for the rest of their lives. With financial illiteracy posing a major problem in America, you’ll be giving your young ones an advantage by showing them how to save and manage their money. The task can be intimidating, but the experts at Cookeville, TN’s Putnam 1st Mercantile Bank have a few tips for ways you can get your kids to learn about responsible financial habits.

Below, they give their top three simple ways to jump-start your child’s financial knowledge:

• Open A Joint Savings Account: By opening a savings account with your child, you can teach them about compound interest, bank statements, and how to save money. Give them extra chores around the house for small amounts of pay, and show them how, by depositing the money, it earns interest and grows over time. The more money they deposit, the more interest they earn. A checking account is also a great way to show kids how to write checks, balance a checkbook, and show the differences between various account types.
• Review Statements: Review banking statements together to show them how, every month, their money is growing all on its own by earning interest. This can turn a seemingly mundane statement review into an exciting, rewarding activity. Online banking also makes it easy to use technology and help them see how their accounts are faring.
• Set Financial Goals: By setting financial goals that appeal to them, like saving for a bike, toy, or video game, you can motivate kids to be better savers and use the opportunity to teach them how to hold onto more of their money. Show them how small, seemingly inconsequential purchases add up over time and prevent them from saving up. 

If you’re ready to start teaching your kids financial skills, check out Putnam 1st Mercantile Bank in Cookeville. From mortgage loans and checking accounts to online banking and all the other services you’d expect from the big banks, they give the friendly, small-town service only a local bank can provide. Check out their services online, or call them at (931) 528-6372 to learn more.