Get your child on a positive financial path with these easy steps.
Shop with your children.
Don’t just push them in the cart and tell them not to touch anything. Talk to them about what you’re buying and why. Let them see how you’re selecting the groceries you buy. Compare prices and let them pick out the best deal. This will also help them see that it’s not always the least expensive item that is the best value for your family.
Promote the entrepreneurial spirit.
Encouraging your children to start a business can help them become more comfortable and confident with money. Maybe your younger children want to sell lemonade on your block, or your older children want to do yard work for neighbors or friends. Whatever they try, you can help them decide what to charge – and add a premium for their time and profit. Something as simple as teaching them how to make change can help them secure a job in the future.
Plan vacations together.
Children love vacationing! They often ask for treats and goodies during a trip, causing you to say “no” more often than you’d like. Talk to them about your budget and ask them to come up with ideas for lodging, activities, food and souvenirs that will stay within budget. Not only will they learn how to plan using a budget, but you’ll have a fantastic vacation.
Teach your teens about credit.
The easiest way to teach teenagers about credit is to provide them with something they haven’t yet earned, and then set up a way for them to pay it back. For example, give them an advance on their allowance with terms for repayment (plus interest). They’ll learn quickly that the sooner the amount is repaid, the better. Show them how credit works when you use your credit card – whether at the store or online – and teach them by example how to use credit wisely and safely.
Open a checking or savings account.
Go with your children to your bank and open a checking or savings account. Teach them about saving money with this account – maybe using a portion of what they earn from their own business or through an allowance. Review the fee schedule with them and show them how to safely use a debit card.
Start as early as possible to teach your children about important financial matters. It’s not as difficult as it may seem, and your children may actually enjoy the education. BancorpSouth’s Student Checking Account and Young Savers Account are two great first accounts for students and children.
To learn more about the student or youth accounts offered at BancorpSouth, give us a call at 888-797-7711.
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