With children comes great responsibility. Part of this responsibility is helping teach your kids the importance of understanding their money and how to manage it. Consider these tips to show your children the value of responsible financial decision-making.
Allowance: Consider offering your child an allowance to teach them proper money management. With an allowance it is less about the amount then handing the child physical money to control. Teach the child what all they can do with their earned allowance, so they can learn and interact with real money.
Savings Account: Opening a savings account early on will encourage the child to be responsible. A monthly trip to the bank where the child can deposit their allowance into their new savings account will reinforce the belief that saving your money is important! Consider opening a Jr. Banker Savings account with Two Rivers which is used for children 17 and younger allowing them to learn the importance of saving money and converts to a regular savings account when the account holder turns 18!
Long-Term Saving: After a child has turned 10 or older it is good to discuss saving for long-term goals. Especially in their early teen years, you can talk to them and set the goal of buying a car for when they earn their license. Use their new savings account to deposit their allowance and other money to save up! Understanding long-term financial goals will make saving for bigger purchases in the future more natural.
Giving: Though saving is important, teaching a child the value of giving their money can be equally beneficial. Instilling in your child that although they have this amount of money others may be less fortunate to which you can give to them. Giving to charity is always a choice or using that money to purchase a gift for a friend or family member can show them other ways to utilize their finances.
Helping your child understand the importance of money management early can help build a financial foundation that they will continue to utilize as they get older. Consider these tips when teaching your young ones and show them how saving can help them later!
Contact your local Two Rivers Bank & Trust branch to discuss setting up a Jr. Banker Savings Account! If there isn’t a branch in your new neighborhood, take advantage of our convenient services including online banking, online bill pay, mobile banking, mobile deposit, and more! Talk to one of our team members to learn how you can keep more of your hard-earned money with Two Rivers!