April is Financial Literacy Month and Alpine Bank believes it’s the perfect time to teach your kids about money. Experts say kids need to be taught that reaching their goals and aspirations requires a healthy understanding of money basics, but unfortunately many parents fall short with these lessons.
While many mom and dads give their children allowance, a recent study done by DoughMain, a financial education website, shows that only 4 percent of parents require their children to deposit money into a bank account. Regardless of whether you have a lot of money or not, starting your child’s financial habits at a young age will help them make wiser money decisions later in life.
Teaching kids financial habits at an early age can sometimes be difficult; therefore, Alpine Bank has come up with a few ways to help make this process easier.
Bring them to the bank: Open a Next Generation Savings Account with your kids. This limited withdrawal savings account helps your child start to save at a young age. Ask your banker for a savings register and when you get home, go over the importance of keeping track of money spent and their current balance. Encourage them to put their birthday, holiday and tooth fairy money into their account.
Clip the coupons: Get your kids involved with the family’s weekly grocery shopping. Have them write a shopping list and set a budget before going to the supermarket. Before you go, have your kids hunt for coupons in the paper and online for items on your list. Just be sure you’re using coupons that are for items you actually need.
Money-hungry piggy bank: Not many people like carrying change around with them, so why not give it to your kids? Empty your pockets out each night, and at the end of each week have your child count the money and put it into their piggy bank. Once a month, go to the bank and watch your child’s face light up when they see how much money they can collect just from change.
Be a role model: Remember that you have a large impact on your child’s life. Set a good example and focus on making good financial habits yourself. Statistics show that 32 percent of parents tell their children they can afford something when they really can’t. Tell the truth about your finances to prevent them from lying about their financial issues later in life.
April is Financial Literacy Month and an excellent time for you to start that money talk with your child. Alpine Bank encourages you to set a good example and help educate your kids on good financial habits this month. We hope to see you and your child soon!