April 1, 2021Teaching Your Child About Money 

For some, discussing money with their young kids can be difficult. For some people, their own financial uncertainties are a barrier to teaching their children about money. Others just may not realize the importance of teaching financial responsibility to children early. Fortunately, as a PEFCU member, you have access to a variety of tools that can help you teach your young child important lessons about money that will help them live their best life.  

 Now is an ideal time to teach your school child valuable lessons about money. Here are some themes you can discuss: 

  • How to make a budget. Using their allowance, teach your child to budget. A simple budget includes three categories: Savings, Charity, and Spending. Explain to them the importance of “saving some, giving some, and spending some.” It might help to label three different jars for each category as a visual to help your child understand where their money goes each week.

  • How to be responsible with money. Discuss the difference between “wants” and “needs” with your child. Teach your child to save up for those wants. Plus, they’ll be proud to achieve their savings goals and enjoy the rewards of buying the item they worked hard to get.

  • Basics of investing money. While the subject of the investment may seem a bit high-level for your high school child, there are simple ways to at least start the discussion. Perhaps begin by explaining what interest is and how it works. When they invest their money at PEFCU, we give them the “gift of interest.” To show them how this works, use play money. If they have an account with PEFCU, show them their monthly statements so they can see their interest earned.

  • The value of comparison shopping. Don’t just teach your child about comparing prices from one store to the next. Teach them about coupons, discount websites, and rebate websites, too; and how they can maximize their savings and make money go further. 

Right now, these lessons may not mean much to your child. But with the outlook on money that you’ve hopefully already instilled in them, they could help connect the dots. Some become more important as your child ages, but your goal now is to help your child set up a financial foundation they can build on. Feel free to strengthen these concepts weekly or monthly.   

We’re Here to Help! 

It’s never too soon to start teaching your child about the importance of managing money. big first step is to open a youth account for them at the PEFCU. You can teach your child how to make deposits, withdraw money, and check their account online.  

To learn more about youth accounts, stop by any branch or call 1-800-226-6673.

Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel. 

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