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How to Teach Your Children Smart Financial Habits

Good fundamental saving habits are important, but they must be learned—we’re not born with them. Do you know how to instill smart financial decisions in your children? In honor of Teach Children to Save Day—April 29th—we put together a list of fun, interactive ways for you to teach your children smart financial habits that they’ll carry with them for the rest of their lives.

Open a savings account when your child is born
After your child is born, head to Two Rivers Bank & Trust to open a savings account for them. This is the first—and most important—step you can take towards helping your children save for the future and develop a healthy attitude about money.little kid

“Opening a bank account for your child at birth sets them up for financial success,” says Senior Branch Manager Cyndi Parks. “It not only will teach them the value of a dollar, but it will also allow them to watch their money—and their efforts—grow into something they can be proud of.”

As they get older, you can deposit birthday or holiday money into their account—take your child with you so they get more comfortable being in a bank and talking to adults about money. While you’re there, you can even teach them how to fill out a deposit form, and show them how to read their statement after depositing money.

“Two Rivers Bank & Trust values helping you teach your children to save for what matters most,” explains Parks. “In addition to our Jr. Banker Savings account, which only takes five dollars to open, we also offer bank tours for school groups and other youth organizations. Tours offer an excellent learning opportunity for children to get excited about banking, and have fun!”

Encourage regular savings habits
When teaching your children good saving habits, don’t forget to make the experience fun! The pigsmore fun and interactive the experience is, the more likely they will be to participate and remember your lessons. Here’s a great teaching technique to try:

  • Set up three separate piggy banks labeled; save, spend and give. Teach your children to deposit a certain amount of all money they receive into each piggy bank. Once the “savings” bank gets to a certain amount, you can show your child how to deposit the money into their savings account. Your kids will love watching their money grow, and will look forward to spending, saving or sharing their money once they reach their monetary goals.


Pay your child an allowance for chores
Paying your child an allowance for doing household chores teaches them the importance of hard work, and gives them the responsibility of managing, and working for their own money. Age eight is a great age to start giving your children an allowance—70 percent of parents reported giving an allowance to their children from ages eight to 14. Work with your children to determine how much of their weekly or monthly allowance will be put into each of their piggy banks.

Go shopping together
The store is a great place to show your kids how much things really cost. Whether taking your shoppingchild grocery shopping, or going on a separate shopping trip to spend money they have saved, make sure you create an open dialogue about money, and explain to them the importance of building a budget or a “spending plan” before going shopping. Encourage your child to do research about what they would like to spend their money on, and work with them to build a budget using the money in their piggy banks as a measuring tool.

Use online games and board games
When teaching your kids about saving, feel free to utilize the learning experiences provided by online games or board games! There are tons of great, kid-friendly games to get young children interested in money management and saving. Here’s a few games we feel are worth mentioning: Monopoly, The Game of Life, Financial Football, Cash Puzzler and Road Trip to Savings.

Now that you have the resources you need to show your children how to save, how will you get your kids excited about saving for their future? Two Rivers Bank & Trust is here to help, and to provide you and your family with the financial services—like our Jr. Banker Savings account—you need to save big. So, get ready, set … and save!