Teaching good financial habits to your children is one of the most important tasks you can do as a parent, providing tools they’ll rely on well into adulthood. Learning the value of money and how to manage a savings account as children will increase the chances they’ll be able to buy a house and comfortably retire someday. Teaching your kids about money may seem difficult, but the tips below will make it easy and straightforward.

3 Tips for Teaching Kids About Money

1. Start With Coins

Children grasp concrete examples better than abstract concepts like “money,” so start with coins. Teaching your kids how to identify different coins and their relative values helps establish the building blocks of financial literacy.

When they get coins as part of their allowance or gifts from relatives, encourage them to save them in a clear bank or glass jar. This allows them to actually see their wealth grow, demonstrating another important lesson they’ll need later in life.

2. Set a Good Example

Children are very observant, so setting a good example is one of the best teaching methods you can use. Explain to your children what you’re doing when paying bills or taking money out of an ATM, and let them see you draw up a household budget.

If you’re tempted to make an impulse buy, tell your children you’re going to wait until the next day to make sure you really want the item. This shows them the value of careful spending, which is one of the keys to financial success.

3. Open a Savings Account

As soon as your children start earning an allowance, take them to the bank and open a savings account. Every week, let them decide how much to put away and how much to spend and talk about their financial goals. Letting them decide what they’re saving for and helping them come up with a plan will help them develop a sense of mastery and the value of working toward a long-term financial goal.

As one of the oldest banks in Greenup County, KY, First & Peoples Bank and Trust Company has provided personal attention and a wide range of services to generations of families throughout Russell, Flatwoods, Greenup, and South Shore. Whether you’re opening a savings account for your child or buying a home, you can rely on their team to deliver friendly service. Visit their website to learn more about their savings account options, or call (606) 836-0211 to speak with a teller today.