During the holiday season, we try to focus on family, community and health. However, there is always one little stressor that bobs its ugly head in the middle of our festivities: Money! If we aren’t careful, it can ruin our mood, instigate family arguments, and dampen the overall season. Financial literacy and community education help us learn the nuances of day to day banking so we can be financially free!
As a financial institution committed to the communities in which we work and live, Insight has successfully partnered with colleges, schools, churches and local organizations to provide financial literacy to all ages. However, there is something to be said about working with the kids.
From Kids College at Lake Sumter State College to Star Academy in Apopka, we have reached young people from preschool to high school. You have to wonder if there is something more rewarding than starting the next generation on the right path. With such a lack of banking basics in the traditional learning environment, we thought we might be able to give you some tips to help children learn the ropes of financial fitness.
- Create a list of items you want to teach your kids about. List items might include budgeting, savings and checking accounts to name a few. Make it your own and certainly only choose items you are comfortable teaching. You can even purchase a curriculum if you prefer. Make sure to use the internet to help your search!
- Once you have your list, make each part fun! For example, when discussing budgeting with teens, have them plan their perfect prom and price out the items they want. Once they see what that price looks like, give them a realistic budget and have the teens price out their expenses with that budget in mind.
- Use real life examples! Saving is incredibly important, but kids need to understand that saving money is rewarding too. The perfect test is a Holiday Club Account! (P.S. This is good for parents too!) Have the children save throughout the year. Then during the holiday season, allow the children to use the funds according to your family customs.
- Engage them in your household financials! True Wealth-KIDS, a great program we have successfully used, recommends that you determine a specific monthly allowance for your kids based on your budget and then allow them to run their own finances. This means your 15 year old is paying his own cell phone bill every month out of his personal allowance. He goes over his text limit? He pays the fee! Your 10 year old really wants that new Disney DVD? It costs $19.99, but she only has $15 left in her spending account for the month. She’ll have to wait until next month to make that purchase. By giving your kids the money, you also give them the control and the responsibility.
- Let them make mistakes. The whole point of teaching your kids about banking is to set them up for success. The advantage you have by teaching them so early is that they are still under your care and protection. Learning from mistakes at 9 and 16 years old is much more helpful and less damaging than learning those lessons at 18 and 21!
We hope these small tips help you in the process of teaching the next generation how to manage money. Insight Credit Union is always willing to do a group workshop too! Simply email us with your request and contact information, and we will be happy to help out. Have a wonderful Holiday Season!