TALKING TO YOUR KIDS ABOUT MONEY

Part of bringing up children today is giving them all the tools they need to survive and do well in the world and environment in which they live. That means, helping them understand the value of and the concepts of earning, spending, saving and investing money.

Parents neglect teaching their children about money for several reasons. Sometimes they don't think it's necessary. Sometimes they feel that, since they are not "financial experts", they are not qualified to discuss it.

Whether we like it or not, money is central to the lives of people today. Therefore, it's our responsibility as parents to give our children the basic understanding they need. That's easier than you might think because, whether you realize it or not, you already have all the information that you'll need.

As your credit union, we're always here to help with the task of teaching your children the basics of handling money. 

Looking ahead and planning for later, not just thinking about "now," is a sign of maturity.  Explain to your children that just as a chipmunk  spends the summer putting away food for the winter, people need to put away some of the money that they have now to save it for later. Saving can mean putting away a little each week to pay for a large ticket item (bicycle, laptop or video game) or so that they will have spending money of their own to use on the family vacation.

Let your children save up for a relatively close purchase so that they can experience the pleasure of being able to buy something on their own after having controlled their urge to just spend money.

We certainly can't let them buy everything they want. Give them some leeway, together with guidance, in how to spend their earnings, gifts and allowance. At the same time, know where you personally want to draw the line. What will you buy for them and what will they have to pay for themselves?

Some children want clothes in excess of what their parents deem necessary. Others are caught up in fads, such as collections and music, and just "have to have" a new item every few days. These are areas of parental discretion and may change as the child grows older. But, whatever you do, make sure there are at least some things your child will have to pay for themselves.

When you teach your child about financial matters, do so in bite-sized pieces. Your goal should be to teach your child just enough to stimulate a genuine desire to learn more.

Teach your child to "pay themselves first" by putting away part of their earnings and gifts.

You can help your child with their savings goals by helping them open a NorState FCU Youth Savings Account.  You can open an account online or stop in to see us at any one of our six branch locations. Your child can use this account to make deposits for future purchases.

When your kids feel comfortable talking to you about money, you'll have established an important bond that will grow in years to come as your child makes career and investment decisions as an adult.