When your kiddos receive cash as a gift, this is a great time to start teaching them about money and savings. Here are some easy, fun ways to kickstart their financial future:
Goal setting
- Help your kid set specific financial goals things like a toy, game, or something else that’s been on their wish list.
- Break down the goal into smaller, achievable milestones to illustrate the benefits of consistent saving.
Save, spend, share jars
- Introduce the concept of allocating money into different jars for saving, spending, and sharing.
- Encourage them to set aside a portion for saving for future goals, a portion for spending on something they want, and a portion for charitable giving.
Comparison shopping
- Teach them how to compare prices when making a purchase.
- Discuss the concept of how choosing wisely can maximize their purchasing power.
Inspiring entrepreneurship
- Support their entrepreneurial spirit by allowing them to use the money to buy supplies they need to sell things they’re passionate about, like crafts or treats.
Savings accounts for kids
- Open a savings account like a Keesler Federal Kids account for kids up to 12 years old. This lets them track deposits and withdrawals, earn rewards, and more!
- Use this as a way to further encourage their financial goals – show the progress they make when they deposit the money they receive as gifts into the account, fostering the habit of saving in a secure place.
Explaining interest
- Introduce the concept of how they will earn interest on savings with a fun activity like putting the gifted money in a jar or piggy bank and adding change to it the longer they wait to take the money out.
Charitable giving
- Discuss the importance of giving back and how it helps others.
- Find a charity that’s tied to something they like to receive the donations, like your local animal shelter if your kiddo loves animals or your local food bank if your child loves to cook.
Money talk
- Remove the stigma of talking about money by engaging in open conversations about money and answer any questions they may have.
- Create a safe space for discussing financial topics and encourage them to ask any questions that come up.
Remember to tailor these approaches based on the age and maturity level of your child. By instilling these principles early on, you’re helping them build a solid foundation for responsible money management in the future.
***Keesler Federal Credit Union is federally insured by NCUA.