Most common core and other school guidelines don’t include requirements for teaching budgeting skills, how to balance a checkbook, or even basic explanations on concepts such as credit, loans or mortgages.
We talked to some credit union members about the lessons they want to pass on to their kids, and below you’ll find some of our favorite lessons to teach your kids.
Make a budget and reconcile your accounts every month. This will give you a pretty good idea how much is in each account. If you want to know if you can afford something, check your budget. If you have to check your checking account, you can’t afford it.
Pay yourself first. Make yourself a financial priority by saving a portion of your allowance or paycheck each time you get paid. To make saving even easier, set up an automatic transfer into your savings account or college fund.
Live within your means. It’s easy to get caught up in buying the latest new thing and competing with your peers (aka Keeping up with the Jones) – but overspending can lead to debt and make it harder to save.
Take risks while you’re young. Generally, you can afford to be more aggressive with your college and retirement funds while you’re young and have plenty of time to make it back up.
It’s never too early or too late to teach kids and teens good money habits. To help you get started, download our FREE Money Talks Guides for Parents or Grandparents [link https://info.arizonafederal.org/Youth-Account-Download ] that is full of tips and ideas. Arizona Federal also offers youth and teen accounts to help your child on their financial education journey.
Your Turn: What are your favorite money lessons? Tell us about it in the comments.