As families across the area gear up for the start of the coming school year and the focus once again turns toward education, Michigan State University Federal Credit Union is reminding parents that there are plenty of avenues for learning outside the classroom and they can help their children become financially successful at any age.
Familiarity with handling money translates into building healthy habits, which can easily result in laying the foundation for financially stable futures. MSUFCU encourages parents to talk about the value of money with their kids. Children and teens pick up on how you as a parent make choices about where the money goes.
Things parents can talk about include:
- Bargain hunting
- Using coupons
- Shopping off the sales rack: When you get excited after finding a great deal, children will too
- Offer allowance or encourage a part-time job so they can start to manage their own money
Families can use real-life scenarios in helping children understand the differences of needs vs. wants. Family shopping trips are good opportunities to discuss budgeting, spending and saving. It's easy to give clear examples of needs and wants by using different kinds of foods at a grocery store: milk (for strong bones) is a need; soft drinks are a want.
Families can also bolster their child’s understanding of finances through actions and activities where he or she becomes familiar with managing his or her own money.
- Create their own save, spend and share banks or jars to deposit their birthday or allowance money in.
- Explain why each jar is important and help them create some goals for each.
- Help them deposit their money into their own bank account at the end of each month.