While youth is a period dedicated to learning, smart financial habits often aren’t a priority in a child’s education. Honolulu-based Hawaiian Tel Federal Credit Union says knowledge of spending, investing, and personal banking creates a foundation for a fiscally responsible adulthood and shares a few kid-friendly financial tips.
5 Ways for Children to Develop Personal Banking Skills
1. Make Your Banking Experience Accessible
Whenever you go to a bank, use an ATM, write a check, or review your online banking profile, consider it an opportunity to invite your child to learn from it. While they may not do anything to help with your personal banking, exposure to it will make them feel comfortable with the concept. They will be more likely and even excited to embrace personal finance when they’re older.
2. Practice Real-Life Budgeting in Stores
The next time you go to a grocery store, start the trip with a list of things you need and items you want, followed by a set amount of money for spending. As you and your child check prices and select goods, they will start to place value on items as the available funds decrease. This also is a good way to teach a child to prioritize when spending.
3. Turn Allowance Into Calculated Earnings
If a child is given a fixed allowance, they might not understand its value. To help them learn money must be earned, use a chore system to replace their allowance. For example, give your child a quarter every time they help you clean the dishes to teach them how work pays off and earnings are something to be proud of.
4. Save With a Goal in Mind
Simply having kids stash money might not excite them about saving. Instead, start a savings account to help your child reach a specific goal, such as a toy purchase or outing. This will help them grasp the basics of saving for big things like a car or retirement.
5. Inspire Investments Early
Purchasing bonds is a simple way to show your child the benefits of investing over time. As they grow older, help them build a portfolio and encourage them to research companies in which to invest and track their progress.
Another way to encourage stronger financial habits is to open a Kids Club savings account at Hawaiian Tel Federal Credit Union. With just a $25 initial deposit requirement and no monthly fee, it will help your child appreciate the value of saving while earning dividends on those funds at Hawaii’s leading credit union. To learn more about their services and find your nearest location, visit them online or call them on Oahu at 832-8700 or toll-free at (800) 272-5255. Follow them on Twitter to receive financial tips and updates.