5 Ways to Teach Kids Good Money Habits
Teaching children how to spend, save and share money is a challenging task – but it isn’t impossible. Below are some basic tips to teach your children how to manage their money.
- Earning and Learning – When money is earned, children develop a sense of understanding that good efforts and work can be rewarded – this is a connection between skill development and career advancement. Showing children how their choices influence whether they gain or lose money, reinforces the power of decision making.
Opening a Star Savings Account and Student Checking Account, also provides an emotional link between work and reward, allowing them to experience the real-life effect of balances and statements.
- Reliability and Responsibility – With the right adult guidance, children can learn more about money by running lemonade stands or lawn care businesses. Small, age and skill appropriate businesses give them a chance to see what working for money feels like!
- Spending and Saving Wisely – Teaching clear guidelines for spending and savings habits is a lesson that can never be taught to early. Using their Star Savings Account and Student Checking Account, parents can help teach kids great ways to save and budget for their wants and desires.
- Satisfaction in Sharing – Teaching children how to share is a difficult task, but helping children understand charity and generosity can give them a sense of empowerment and compassion they will need as adults.
Responsible money management isn't easy for anyone to learn, but starting with basic principles at an early age, children can gain an advantage in seeing money as a tool instead of a toy to help them enjoy life to its fullest.