5 Ways to Help Your Kids Learn About Money

Responsible spending habits will help your children learn how to make the right choices. You can do many different things to get your children on the right track to a bright financial future. Check out a few ways to get started:

1. Shop with your children. When you go to the store, talk to your children about what you’re buying and why. Teach them how to compare prices and explain why it’s not always the least expensive item that’s the best deal.
2. Open a youth account. Visit any Pinnacle Bank branch or go online to open a Captain Summit Savings Account. Use this account to help your children learn how to set and achieve savings goals. As your children mature, you should consider opening a joint checking account with them. That way, you can teach them about fees, overdraft protection, how to use a debit card safely and the benefits of using online and mobile banking to manage their account.
3. Plan vacations together. Children love vacationing. Instead of having to say “no” more than you’d like during your getaway, let your children help you plan your trip. Talk to them openly about your budget and ask them to develop ideas for lodging, activities, food and even souvenirs that will stay within your budget. Not only will you be teaching them how to plan using a budget, but you’ll have a fantastic vacation as well.
4. Talk about credit with your teenagers. Your children must understand what credit is and how it works before leaving home after high school. Consider co-signing on a credit card with them to allow them to use credit responsibly under your direction and, at the same time, begin to establish credit. Discuss how credit works and the ramifications of using credit unwisely.
5. Promote the entrepreneurial spirit. Allowing your children to start a business may help them feel more comfortable and confident with money. For example, maybe your younger children want to sell lemonade on your block, or your older children want to start a lawn care business in the neighborhood. Whatever the case may be, you can help them decide how much to charge (adding a premium for their time and profit) and how to manage their schedule.

While each family is different, the most important thing is to teach your children about money as early as possible. You’ll find that it’s not as difficult as it may seem, and your children will likely enjoy the education.