Post date: 2/1/2022
Availability and special terms are subject to change.
Budgeting is a challenge, even for adults. But teaching kids how to manage money early — and getting them involved when crafting the family budget — are excellent steps. Start sooner rather than later with your kids. And don’t be afraid of having honest conversations that open the dialog about saving and spending.
Teaching your children the basics.
Get them involved with the family budget. This allows kids to gain first-hand experience and learn how to manage money better. It also encourages them to have open and healthy money conversations in the future when they move out and start families of their own.
Budgeting tips for the entire family:
- Get Everyone Onboard – Create a budget and “spending contract” with your kids as you work toward family goals. Communicate openly about finances and when making major purchases. If your money personalities differ, find ways to compromise.
- Hold Spending Conversations – Have frequent and open discussions about spending and money with your kids. Sharing feedback on the family budget offers a valuable learning experience for everyone.
- Track Your Spending – No matter your age, having a grasp on your spending is essential. To assist, keep receipts or store them virtually and track transactions in Online and Mobile Banking. The goal is to understand where your money goes, then adjust your spending accordingly. Try online software programs that show your spending patterns.
- Distinguish Between Needs vs. Wants – This lesson is challenging but essential. The secret? Learning how to prioritize your wants and knowing you probably can’t have it all in a shortened timeline. Also, most of us can’t buy all we need without access to affordable credit.
- Gain the Power of Saving – Don’t underestimate the power behind saving, and leverage your tools to make it easier, such as special club accounts or automated deposits. And rather than overextending yourself for a major purchase — save for a portion instead to make payments manageable. Being disciplined to save is extremely gratifying: it can make reaching long-term goals easier, reduce your debt load, and strengthen your credit score.
- Stay Committed – Budgeting is not a one-and-done deal. Instead, it’s a gradual process. It requires frequent check-ins to see how you’re doing. How close are you to your goals? What can you adjust? How is your spending? Bottom line? Don’t be afraid to make changes. This is another valuable lesson for your children as well. Being flexible has many rewards and can encourage budgeting success.
Don’t wait to get started!
We can help you and your family craft a solid budget and reach your financial goals.