4 Ways to Teach Your Kids About Money

Posted on May 7, 2021 by VP of Marketing and Business Development Jessica

Mother’s Day is this upcoming weekend (Happy Mother’s Day to all our First Scoop reading Moms!), and in thinking about this important holiday and all you’ve taught your children in life up to this point – here are a few significant pointers you can teach them about their future finances.

Let your kids earn some money. It’s rather difficult to teach your children about money if they don’t physically have any. Though just giving it to them without explaining the value of earning money based on hard work, won’t teach them anything either. Instead, give them some responsibilities around the house (taking out or walking the dog, age appropriate chores, etc.) and provide them with a weekly or bi-weekly allowance so they will know that money needs to be earned through consistent work.
Teach your kids to save money. If your kids just spend their allowance on whatever they want, whenever they want – this isn’t helping them or teaching them about the importance of savings. Talk to your children about saving for a rainy day, retirement savings, and compound interest. You can even try setting savings goals for your kids and reward them for saving by giving them a little bit extra when they meet the goal.
Allow your kids to spend some money too. Instead of just buying your children whatever they ask for, teach them the significance of making responsible purchases and to really think about their purchase before buying something. This will show them that they can get an item of their choice, but in order to do so they are also learning about saving, budgeting, and spending money too.
Show your kids it’s okay to be frugal. One of the most important lessons you can instill in your children is the value of saving their money for things that really matter. Teach them to comparison shop, use coupons whenever possible, and not to buy things for the sake of just buying something.

The best way to teach your children to be financially responsible is to be an example for them. Don’t be afraid to talk to your kids about your own personal money experiences too!

Article Source: CUInsight.com

3 Things Kids Should Know About Money

Posted on August 27, 2019 by VP of Marketing and Business Development Jessica

With another school year about to get into full swing, money management is an important lesson your children can be taught right at home.

Your kids probably don’t have a deep knowledge about money and how to manage it. What they do know, they’ve probably learned from watching you. Here are some basics that all kids should learn about finances.

It has to be earned: As you were probably told when you were young (and possibly in a snarky tone), “money doesn’t grow on trees.” While that’s only partially true (cash is made from paper and paper is actually made from trees), money is not free. An allowance in exchange for doing chores is a great way to teach your kids about earning money.

It must be saved: An easy way to get your kids to learn how to save is to give them a goal. Whether it’s a video game system or a new toy they have been asking for, don’t just give your kids whatever they want. Have them save up for the item, and for something more expensive like a video game system – give them a savings goal and have them pay for at least a good portion of it.

It should be spent: While it’s important to save your money, it’s also important for kids to understand that money is meant to be spent. You have to spend money in order to live your life. But when learning to spend, they should learn how to spend wisely. Teach your kids about coupons, sales, and generics brand items. Saving and spending may seem like opposites, but spending wisely is also a great way to save!

Need a great way to teach your children to save? Open a First Step Kids Savings Account! Available for kids up to age 18, there are no minimum balance fees, and dividends are posted quarterly on balances of $100 or greater.* Get your kids on the path to savings today, we’re here to help!

*As of 7/2/2020, the First Step Kids Account has an annual percentage yield of 0.03% on balances of $100.00 and more. The dividend rate may change after the account is opened. Parent or guardian must bring both the child’s birth certificate and social security card when opening a First Step Kids Account at any branch location. Parent or guardian will be a joint owner and must also bring their identification. A First Financial Membership is open to anyone who lives, works, worships or attends school in Monmouth or Ocean Counties.

Article Source: John Pettit for CUInsight.com

4 Healthy Money Moves to Teach Your Kids

Posted on May 19, 2017 by VP of Marketing and Business Development Jessica

Many parents underestimate just how many things they have to teach a child. From the early basics of manners and potty training to more advanced things, such as having empathy and how to deal with hard life situations, the list goes on and on. That’s why many people neglect areas like financial training.

What else should parents be teaching their kids in regard to finances? Here are four lessons everyone should learn and pass on to their children.

1. Give Every Dollar a Job

Kids need to learn that every dollar needs a purpose from early on. This can be taught when your children get an allowance and birthday money. A portion should go to savings, giving, and spending.

2. Say No to Impulse Buying

Saying “no” to kids when they want something in the store is hard, but it’s disastrous if a child gets used to impulsive buying. Instead, help children come up with a savings goal for a particular item. If they are saving $50 for a special toy, then they need to know that $2 impulse buys on candy or smaller toys will ultimately delay their saving goal and make them less happy.

3. Learn How to Comparison Shop

Teaching your child how to take the time to do research will help their money go further. A new tablet might cost $250, but if they shop eBay or Amazon, they can get a refurbished model for half the price.

Along with comparing prices, teach kids to look up reviews on items. It’s awful to pay a lot of money for an item that doesn’t work like it is advertised. Taking time to research the product beforehand can prevent wasted dollars.

4. Learn How to Bounce Back from Mistakes

Even though you want to equip your child with financial wisdom, there is a good chance they will still make silly money mistakes. That is okay. It’s especially important for kids to make money mistakes now, when only a few dollars are at stake, rather than later when much more money is at risk.

If your child is insistent on buying that low-quality toy or wasting their savings at the arcade, then let them try it. Hopefully they will learn that spending money in this manner doesn’t make them as happy as they thought it would.

The best way to teach your kids to be financially wise is to be an example for them. Don’t be afraid to talk to your children about your finances or about money mistakes you made when you were younger too. Your experience is extremely valuable, and not just to you.

Article Source: Ashley Eneriz for MoneyNing.com